The Australian dollar traded near 110.60 yen in an early European session snapshot Thursday, as FXStreet said recent Bank of Japan inflation remarks helped underpin the yen.
The report was timestamped 12:37 a.m. ET (04:37 UTC). FXStreet placed first support at 110.20 and resistance at 111.15, with the 100-day simple moving average around 112.10. Its relative strength index (RSI) reading was near 50, which the outlet viewed as neutral momentum. FXStreet described the chart outlook as modestly bearish at that time and disclosed that AI tools assisted its technical analysis.
Reuters reported that Deputy Governor Ryozo Himino told lawmakers Wednesday, Oct. 21, that underlying inflation was “quite close” to the Bank of Japan’s (BOJ) 2% goal. Himino described financial conditions as “accommodative,” Reuters reported. Reuters separately said Governor Kazuo Ueda told parliament Monday, Oct. 19, that underlying inflation was approaching the same target.
At a Sydney conference Wednesday, Oct. 21, Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser said the inflation outlook had become “materially worse” than the bank’s August view. He cited oil prices about one-third above the level assumed in that outlook, AI and technology costs showing up in consumer prices, and pressure from domestic capacity. Hauser said further action against inflation could weaken economic activity and the labor market.
After Hauser’s comments, The Guardian reported, market pricing for a Nov. 3 RBA rate increase rose from 30% to 45%. That was a reported shift in market expectations, not a central bank decision.
Japan’s Ministry of Finance reported provisional September exports up 16.7% from a year earlier and imports up 18.9%, leaving a ¥536.558 billion trade deficit. Export values for semiconductors and related items rose 49.4% year over year.
Australia’s September consumer price index is due Tuesday, Oct. 27, at 8:30 p.m. ET (00:30 UTC Wednesday). The BOJ meets Oct. 29-30, followed by the RBA on Nov. 2-3.
