In the Asian / Oceania market where Tokyo is absent, the Bank of Australia announced a rate hike. The policy interest rate has been raised from 0.10% to 0.35%. The policy was not to raise interest rates until 2024 after the pandemic, but the situation was forced to raise interest rates due to global inflationary pressure following the Ukrainian war. Future rate hikes are also needed to reach the inflation target.
Immediately after the announcement, the Australian dollar was bought at once for each currency. It temporarily rose from 0.71 against the dollar to around 0.7050, and against the yen from the low 92 yen to around 92.95. However, after that, there was a swing back, and the market was nervous.
Ahead of the announcement of the results of the US FOMC tomorrow, there is a possibility that the US side will issue a strong message about future rate hikes. It seems that it takes courage to keep the dollar selling position. The reaction to buying Australian dollars has not been long-lasting.
A stalemate ahead of tomorrow’s FOMC. It seems that liquidity has not returned yet due to some countries being closed. I plan to consider entry if there is a place to go from the perspective of buying dollars.
