AUD/JPY Slumps Below 112.50 Amid Intervention Concerns
The AUD/JPY cross is trading in negative territory near 112.35 during the early European session on Thursday, as traders remain cautious about further intervention from authorities.
A Reserve Bank of Australia (RBA) Governor Michele Bullock speech is scheduled for later this week, which may influence market sentiment. Meanwhile, Goldman Sachs Research strategist Karen Fishman noted that the JPY's gains are fading due to intervention being 'not a sustainable fix,' and instead just buying time.
The Bank of Japan (BoJ) highlighted growing risks of accelerating inflation in its summary of opinions from the July meeting, with one board member suggesting that interest rate hikes could accelerate. The BoJ may consider an additional interest rate increase at its next September policy meeting in response to rising inflation risks.