The AUD/JPY cross extends decline around 94.25 on Monday during the early European session.
AUD/JPY extends its downside near 94.25 in Monday’s early European session, down 0.18% on the day. Economists expect the BoJ to raise interest rates further by the end of this year. The concerns about the Chinese economic slowdown further weigh on the China-proxy AUD. The stronger Japanese Yen and the hawkish vibes ahead of the key Bank of Japan interest rate decision on Friday drag the cross lower.
How do the decisions of the Reserve Bank of Australia impact the Australian Dollar? The Reserve Bank of Australia influences the Australian Dollar by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down.
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