AUD/JPY attracts bids near 100.30 as BoJ holds interest rates steady at 0.5%

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The AUD/JPY pair attracts bids and rebounds to near 100.70 in Thursday’s Asian session as the Bank of Japan (BoJ) has left interest rates steady at 0.5%. The BoJ was expected to maintain the status quo for the sixth meeting in a row, but the 7-2 vote split has weighed on the Japanese Yen (JPY)

AUD/JPY recovers early losses and jumps to near 100.70 after the BoJ held interest rates steady at 0.5%, with a 7-2 majority.
The BoJ was expected to maintain the status quo, as PM Takaichi seems a keen follower of Abenomics.
Receding RBA dovish expectations have strengthened the Australian Dollar.

A recent Reuters poll also showed that the chances of an October hike were 24%. Economists were confident about the BoJ holding interest rates steady due to the newly elected Prime Minister Sanae Takaichi, who has appeared following former PM Shinzo Abe's policies, which favors looser monetary and fiscal conditions.

BoJ’s outlook report has shown that the Japanese central bank sees the core Consumer Price Index (CPI) for fiscal 2025 median averaging at 2.7%, as previously anticipated in July.

Meanwhile, the Australian Dollar (AUD) is also demonstrating strength amid receding expectations that the Reserve Bank of Australia (RBA) will deliver another interest rate cut in the remaining year.

Australian Dollar Price Today

The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the Japanese Yen.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.10%	-0.05%	0.09%	-0.03%	-0.21%	-0.19%	-0.06%
EUR	0.10%		0.05%	0.21%	0.08%	-0.11%	-0.09%	0.04%
GBP	0.05%	-0.05%		0.16%	0.02%	-0.15%	-0.15%	-0.01%
JPY	-0.09%	-0.21%	-0.16%		-0.14%	-0.32%	-0.34%	-0.20%
CAD	0.03%	-0.08%	-0.02%	0.14%		-0.17%	-0.16%	-0.03%
AUD	0.21%	0.11%	0.15%	0.32%	0.17%		0.01%	0.15%
NZD	0.19%	0.09%	0.15%	0.34%	0.16%	-0.01%		0.16%
CHF	0.06%	-0.04%	0.00%	0.20%	0.03%	-0.15%	-0.16%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).

RBA dovish expectations have been undermined by hotter-than-projected Australian Q3 and September’s Consumer Price Index (CPI) data released on Wednesday. The report showed that price pressures grew at a faster pace of 1.3% on a quarterly basis against estimates of 1.1% and the prior reading of 0.7%.

Globally, the appeal of risky assets remains firm as the ongoing meeting between United States (US) President Donald Trump and Chinese leader Xi Jinping is expected to end with both nations announcing a trade deal. “Will have a fantastic relationship for a long time,” Xi said during the meeting with Trump, Xinhua reported.

Economic Indicator

BoJ Interest Rate Decision

The Bank of Japan (BoJ) announces its interest rate decision after each of the Bank’s eight scheduled annual meetings. Generally, if the BoJ is hawkish about the inflationary outlook of the economy and raises interest rates it is bullish for the Japanese Yen (JPY). Likewise, if the BoJ has a dovish view on the Japanese economy and keeps interest rates unchanged, or cuts them, it is usually bearish for JPY.