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AUD/JPY Slumps on Intervention Fears and Rising Hike Odds

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JPY AUD
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The Australian Dollar (AUD) declined against the Japanese Yen (JPY) on Friday morning in Europe, trading near 112.55 as the pair maintained a bearish short-term tone.

Market analysts have assigned a 76% probability of a Bank of Japan rate hike in September, significantly higher than the 24% forecasted on July 30.

DBS Group Research noted that the JPY's undervaluation has narrowed after Japan's second coordinated FX intervention with the US this year.

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