AUD/JPY TRADES BELOW 92.00, EDGES LOWER DUE TO RBA RATE CUT EXPECTATIONS
AUD/JPY TRADES BELOW 92.00, EDGES LOWER DUE TO RBA RATE CUT EXPECTATIONS
The AUD/JPY currency pair has declined below the 92.00 level, reflecting increased expectations that the Reserve Bank of Australia (RBA) will implement a rate cut in its upcoming May meeting.
The AUD/JPY pair has fallen to approximately 91.80 during early European hours on Monday, marking a significant move below the 92.00 support level.
Economists and major banks, including Westpac and the Commonwealth Bank of Australia (CBA), predict that the RBA will reduce the official cash rate by 25 basis points to 3.85% in May.
This move is expected to stimulate economic growth amid global uncertainties, particularly the escalating US-China trade tensions .
The intensifying trade war between the US and China, characterized by new tariffs of 145% by the US and 125% by China, has raised concerns about global economic stability.
The International Monetary Fund (IMF) anticipates a $13 billion impact on the Australian economy, reinforcing the RBA's need to stimulate growth .
The Australian Dollar remains under pressure due to the increased likelihood of an RBA rate cut.
renewed concerns about China's economy, Australia's key trading partner, following weak economic data have added strain on policymakers .
