AUD/JPY Surges Amid Oil-Driven JPY Weakness and RBA Rate Hike Expectations

The Australian Dollar (AUD) has gained against the Japanese Yen (JPY), reaching around 110.40 during European hours on Tuesday, marking a second straight day of gains.

The move is attributed to renewed selling pressure on the JPY due to higher global oil prices increasing import costs for Japan's energy-reliant economy.

Elevated energy prices have been a persistent challenge for Japan, and the latest rise in crude costs added to currency headwinds, providing support for the AUD against the Yen in the cross.

The Reserve Bank of Australia (RBA) outlook has also lent support to the Australian Dollar, with analysts at Rabobank pointing to recent commentary from the central bank as reinforcing a more restrictive policy stance.