Forex
AUD/JPY Flatlines Ahead of BoJ Interest Rate Decision
The AUD/JPY cross has been trading flat around 110.20 in early European hours on Tuesday, but markets may become cautious ahead of the Bank of Japan's (BoJ) interest rate decision on Friday.
Analysts expect the BoJ to raise its benchmark interest rate to 1.25%, which would be the highest level in about 31 years.
MUFG analysts said, 'A 25 bps hike is already almost fully priced.' They added that for the yen to strengthen further, the BoJ will have to signal it's planning to stick to a faster pace of hikes.