Key facts
- The Yen paused its slide against the dollar near the 160 level.
- Traders are wary of intervention by authorities to support the Yen.
- Australian Dollar futures rose approximately 0.25% towards four-year highs.
- The Reserve Bank of Australia remains committed to fighting inflation.
- Bank of Japan Governor Kazuo Ueda is set to deliver a speech today.
In FX markets, Australian Dollar futures showed upward price action, trading near 0.7176 and up approximately 0.25%, approaching recent four-year highs. This strength was attributed to the Reserve Bank of Australia's firm stance on combating persistent inflation. Meanwhile, traders were reluctant to push the Yen beyond the key 160 level against the dollar due to the risk of intervention by authorities to prop up the currency. The Yen weakened to levels that preceded intervention by Tokyo last month, prompting fresh warnings by Finance Minister Satsuki Katayama. Bank of Japan Governor Kazuo Ueda will deliver a speech today that could reveal his thinking on the prospects of a June rate hike. Euro and Japanese Yen futures experienced slight declines, while British Pound futures saw a modest increase. Broader FX futures markets were generally quiet.