Reserve Bank of Australia’s hawkish stance lifts AUD as markets price in higher rates through 2026 without cuts.
The AUD/JPY pair climbed above 114.00 in early European trading, supported by the Reserve Bank of Australia’s signal of further rate hikes. The RBA’s latest forecasts project a 4.70% policy rate by end-2026, with no cuts expected until 2028.
Recent strength follows the RBA’s hawkish tone, contrasting with potential Japanese intervention to stabilize the JPY. Japanese officials reaffirmed cooperation with the U.S. on currency moves, while technical indicators show bullish momentum without overbought conditions.
Immediate resistance lies near the upper Bollinger band, with the Relative Strength Index at 59, suggesting room for further upside.