AUD Strengthens Against JPY on Diverging Central Bank Policy Outlooks

The Australian Dollar (AUD) has strengthened against the Japanese Yen (JPY), rising by 0.32% to trade at around 112.10 on Monday.

This movement is attributed to growing expectations of another interest rate hike in Australia next week, following a monetary policy meeting.

RBA Governor Michele Bullock recently reinforced this view, warning that inflation risks remain tilted to the upside and that the key question is whether the monetary tightening delivered so far will be sufficient to return inflation to target within a reasonable timeframe.

Attention will now turn to Australia's employment report on Thursday, which could further strengthen expectations of tighter monetary policy and support the AUD.