The cross-currency pair, also known as the risk-barometer, rallied the most in seven weeks the previous day as traders brace for the dovish RBA hike and ignored inflation fears emanating from the Organization of the Petroleum Exporting Countries and its allies led by Russia, known as OPEC+, move.
It’s worth noting that the downbeat yields and mixed data from China and Australia also failed to stop the AUD/JPY bulls the previous day amid cautious optimism in the market. On Monday, the US 10-year Treasury bond yields dropped in the last four consecutive days to 3.42% at the latest while the two-year counterpart marked a two-day downtrend in the last to 3.97%.
That said, Australia’s TD Securities Inflation eased to 0.3% MoM and 5.7% YoY for March versus 0.4% and 6.3% respective priors. Further, China’s Caixin Manufacturing PMI for March drops to 50.0 from 51.6 prior and 51.7 market forecasts. On the other hand, Japan’s Tankan Large Manufacturing Index for the first quarter of 2023, a closely observed output guide by the Bank of Japan , eased to 1.0 from 7.0 previous readings and 3.0 expected. On the other hand, Japan’s Jibun Bank Manufacturing PMI for March improved to 49.2 from 48.6 previous. However, the below-50 figure suggests a contraction in private manufacturing activities.