AUD/JPY traded above the 110.00 level, reaching near 110.20 during early European trading hours on Tuesday, as investors awaited comments from Bank of Japan Governor Kazuo Ueda, FX Street reported.
Market participants are closely watching Ueda’s speech later on Tuesday for any indications regarding the BoJ’s interest rate outlook. The central bank may signal later this month that underlying inflation is approaching its 2% target, which could influence future monetary policy decisions.
Given Japan’s prolonged low inflation environment, any confirmation of inflation nearing target levels would be significant for currency and equity markets, potentially impacting the Bank of Japan’s policy stance and market expectations.