BoJ Governor's Speech Scrutinized for October Rate Hike Signals

Bank of Japan Governor Kazuo Ueda delivered his first major public remarks since the bank raised its policy rate to 1.25% last month. His speech at the National Securities Convention in Tokyo on Tuesday drew attention from yen traders, who are seeking signals about a potential second consecutive rate hike at the upcoming October policy meeting. The September rate adjustment marked a significant shift in the BoJ's monetary policy, and any indication of further tightening could have substantial implications for the yen and broader financial markets.

Meanwhile, US President Donald Trump addressed several international topics, stating that there is no rush to reach a trade deal with Canada before the midterms and expressing openness to direct talks with Iran. He also mentioned plans to support farmers with diesel and expressed optimism about resolving tensions between Saudi Arabia and the Houthis.

In Australia, consumer sentiment remains deeply troubled, with the latest sentiment index registering just over 80, a figure among the worst recorded since the survey began in the early 1970s. This marks the third time this year that sentiment has hit such low levels, following similar readings in April and June, with eight other instances in 2022-23. The data suggests that Australian consumers are still grappling with a prolonged cost-of-living crisis.