FXStreet's Oct. 26 snapshot put the Australian dollar near 110.35 yen at 04:39 UTC, with policy meetings at Japan's and Australia's central banks scheduled for the days ahead.
The cross was below 110.50. FXStreet's daily chart analysis placed it below a 100-day simple moving average of 112.05 and gave a Relative Strength Index reading of 47.01, with support at 110.15 and resistance at 111.10. The outlet characterized its chart setup as bearish below the average and disclosed that AI assisted its analysis. These are provider-specific technical readings.
FXStreet linked support for the yen against the Australian dollar to expectations of another Bank of Japan (BoJ) rate increase this year. The BoJ's current guideline is to keep its uncollateralized overnight call rate around 1.25%, and its next policy meeting is scheduled for Oct. 29-30. A Reuters poll conducted Oct. 13-19 found 54 of 78 economists expected the rate to reach 1.50% in the fourth quarter. Of the 54 who named a month, about 80% selected December and 2% chose the meeting ending Oct. 30. The poll records economists' forecasts; it does not indicate the BoJ's decision.
Australia's cash rate target is 4.60% after the Reserve Bank of Australia (RBA) raised it by 25 basis points on Sept. 29. In an interview published Oct. 25, RBA Assistant Governor (Economic) Sarah Hunter said the Board still had more work to do to bring inflation down. Asked whether policymakers had done enough, Hunter replied, “Unfortunately, not quite yet.” She said the Board would not pre-empt its next decision and that higher borrowing costs affect households and businesses, including mortgage holders and renters. The RBA's September minutes say exchange-rate movements can affect domestic inflation.
The Australian Bureau of Statistics lists September consumer price index data for release Oct. 28. The BoJ's policy statement and October outlook are scheduled for Oct. 30, and the RBA's next rate decision is due Nov. 3.
