AUD/JPY trades higher at 113.85
The Australian Dollar strengthens against the Japanese Yen due to the interest rate differential between the Reserve Bank of Australia and the Bank of Japan.
The Reserve Bank of Australia decided to hold the Official Cash Rate steady at 4.35% at its June policy meeting, after delivering three consecutive 25 basis points hikes earlier this year.
Traders have raised their bets on an RBA rate hike, now pricing in nearly a 23% odds of a hike in August and more than a 50% chance by December.