AUDJPY accelerates to 94.00 post RBA minutes release and Japan’s GDP contraction – by Sagar_Dua24 AUDJPY RBA GDP Inflation BOJ
after the release of the rationale behind the announcement of the second consecutive 25 basis points rate hike by the Reserve Bank of Australia . Also, a contraction in Japan’s economic activities in the third quarter has weighed pressure on the Japanese yen.minutes, the chances for a 25 bps rate hike despite a historic surge in the inflation rate to 7.3% stood at 75%.
This has weighed heavily on households’ consumption. Higher interest rates and price pressures have impacted households’ budgets despite falling housing prices due to higher interest obligations. After a rise in inflationary pressures above 7.0%, the RBA has elevated its inflation guidance to 8.0%. Meanwhile, investors are punishing the Japanese yen broadly on releasing a contraction in economic activities for the third quarter. The Japanese economy has displayed a de-growth of 0.3% in the third quarter against expectations of a growth rate of 0.3% and the prior release of 0.9%. On an annualized basis, the economic catalyst has displayed a negative growth rate at 1.2% against an expansion of 1.1% as expected and the prior release of 3.5%.