In October, the Australian dollar/Japanese yen (AUD/JPY) has been trading around 100 yen, where the 200-day moving average is positioned, with prices moving up and down without a clear direction. Today, Australia will release the Consumer Price Index (CPI) data for both the July-September quarter and for September alone. Both are expected to show a slower rate of inflation than before. Since the Reserve Bank of Australia (RBA) is the only major central bank that has not cut interest rates, confirmation of slowing inflation might lead to increased expectations for a rate cut.
With the U.S. employment report due at the end of this week, the upcoming FOMC meeting, and the U.S. presidential election approaching, it seems unlikely that the AUD/JPY will break out of its current range. However, it’s important to be cautious about any risks of the rate moving lower.
Expected trading range for AUD/JPY: 101.20 yen – 99.80 yen
Please note that the above information does not guarantee any profit. Please make trading decisions based on your own judgment.