Lates News

The super central bank week is about to begin, with meetings from the Bank of Japan and the Reserve Bank of Australia expected to reveal authorities' views on the Middle East conflict following the latest US-Iran ceasefire. The market generally believes that a rate hike by the Bank of Japan is a foregone conclusion, with the focus on how the yen will deal with the continuous intervention risk. Analysts at TD Securities said that relying solely on rate hikes will not support the yen's performance, and they believe that the Bank of Japan needs to adopt a more hawkish policy stance to accelerate tightening and raise terminal interest rates to effectively curb the yen's weakness. Meanwhile, the Reserve Bank of Australia is expected to pause its rate hikes after three consecutive increases. Analysts at Nomura Securities believe that the Reserve Bank of Australia will not easily announce that it has achieved its inflation target and is unlikely to provide forward guidance. Any signs of a darkening economic outlook could put pressure on the Australian dollar.