AUD/JPY Flat Near 93.00 as RBA Cuts Weigh, BoJ Hawkish Tone Lingers

AUD/JPY remains rangebound around 92.80 in early Asian trading on Wednesday

Holding near the 93.00 level after a significant decline of over 0.50% in the previous session. The move followed rate cut announcements by both the Reserve Bank of Australia (RBA) and the People’s Bank of China (PBoC), which weighed on the Aussie Dollar.

On Tuesday, the RBA lowered its Official Cash Rate (OCR) from 4.10% to 3.85%. RBA Governor Michele Bullock described the cut as a forward-looking move designed to instill confidence in a fragile economy, while also leaving the door open for further easing if needed. This dovish tone raised speculation of additional rate cuts in the coming months.

In contrast, the Japanese Yen continues to gain strength, driven by hawkish rhetoric from Bank of Japan (BoJ) Deputy Governor Shinichi Uchida, who hinted at potential further policy tightening in response to sticky inflation and wage growth.

With growing divergence between the two central banks — the RBA leaning dovish and the BoJ turning hawkish — downside risks for AUD/JPY remain elevated, especially if market sentiment continues to favor safe-haven flows into the Yen amid global economic uncertainty.