AUD/JPY appreciates due to the likelihood of RBA to avoid rate cuts. Australia's 10-year bond yield surged to 4.1%, marking its highest level in over a month. The diminished geopolitical tension could weaken the safe-haven JPY. AUD/JPY continues to move in the positive direction, rising to near 99.90 during the European session on Monday. This rise is attributed to the appreciation of the Australian Dollar , supported by gains in the domestic equity market.
Market participants are closely monitoring the prices of copper and oil, as further appreciation could potentially provide support for the Australian Dollar , consequently, underpinning the AUD/JPY cross. The Japanese Yen continues to face downward pressure as the Bank of Japan maintains a cautious stance towards further policy tightening. Additionally, reduced geopolitical tensions in the Middle East could dampen the appeal of the safe-haven JPY.