AUD/JPY gains ground due to hawkish sentiment surrounding the RBA. RBA is expected to maintain the cash rate at a 12-year high of 4.35% on Tuesday. Japanese markets are closed on Monday due to a national holiday, with the potential for intervention by Japanese authorities. AUD/JPY continues to gain ground, tradingaround 101.90 during the European trading hours on Monday, buoyed by a hawkish sentiment surrounding the Reserve Bank of Australia .
Last week, the Japanese Yen appreciated amidst potential government intervention by Japanese authorities. Reuters reported that data from the Bank of Japan indicated that Japanese authorities may have allocated approximately ¥6.0 trillion on April 29 and ¥3.66 trillion on May 1 to reinforce the JPY. The perceived market intervention by Japanese authorities provided only temporary relief, as the underlying market fundamentals continue to weigh bearishly on the Japanese Yen.