What are AUD to JPY forecasts?
The Australian Dollar (AUD) has recently managed to rebound in spite of a souring market mood and risk-averse sentiment, with no clear catalyst driving this movement. FX analysts will closely watch the latest PMI surveys, as a continued contraction in manufacturing activity could impact AUD negatively, while strength in the services sector may alleviate potential losses. As Australia heavily relies on commodities exports, alterations in commodity prices and trade policies, as well as political developments, may significantly influence the AUD's value. The Australian Financial Review's survey of 36 economists forecasts the Aussie dollar to reach 0.71 USD by the end of 2023, however, predictions vary between 0.67 and 0.77 US cents, with a consensus of the RBA instigating its first rate cut in early 2024.
On the other hand, the Japanese Yen (JPY) experienced volatility due to the Bank of Japan's (BoJ) decision to leave interest rates unchanged and announce a policy and strategy review that could take one to one and a half years. The JPY lost out against the US Dollar throughout April and suffered significant losses versus the Euro, with the yen reaching a high since 2008 at ¥151.16 against the Euro in early May. Three main factors influence the USD to JPY exchange rate, including the US-Japan interest-rate gap, changes to global oil prices, and the yen's safe-haven status. According to the market view, USDJPY may fluctuate between ¥129.70 and ¥139.70 for May.
For the AUD to JPY exchange rate, it currently trades at 91.45, which is 1.7% above its 3-month average of 89.91. Over the past three months, the AUDJPY rate has remained relatively stable and traded within a 6.3% range from 86.70 to 92.16. FX analysts and investors will continue monitoring economic indicators and international events to assess the potential impact on this exchange rate in the coming months.