Bullish
AUD/JPY rallies to 114.30 amid hawkish RBA expectations and yen weakness
The AUD/JPY pair has surged to 114.30, driven by market anticipation of a hawkish Reserve Bank of Australia (RBA) stance following stronger-than-expected Australian Consumer Price Index (CPI) data. This bullish momentum is further supported by the Bank of Japan's (BoJ) continued ultra-loose monetary policy, which maintains a favorable yield differential for the Australian dollar.
Key points
- Australian CPI data for July showed a 3.5% year-over-year increase, surpassing the 3.3% consensus and the previous 3.8%, fueling expectations of an RBA rate hike.
- Market pricing for a September RBA rate hike has risen to 38%, up from 17% prior to the CPI release, indicating heightened hawkish sentiment.
- The BoJ's commitment to its ultra-loose monetary policy continues to weigh on the yen, contributing to the AUD/JPY's upward trajectory.
Sources
- AUD/JPY Price Forecast: Rally extends further to near 114.30 as hawkish RBA bets accelerateFXStreet · August 26, 2026
- AUD/JPY Price Forecast: Gains ground to near 114.50, bullish tone prevails above 100-day SMAFXStreet · August 27, 2026
- AUD/JPY Extends Rally to 114.30 as Hawkish RBA Bets AccelerateCryptoRank.io · August 26, 2026
AI-generated from public news sources. Not financial advice.
