AUD/JPY and NZD/JPY are expected to move next week in response to remarks by the RBA governor, parliamentary testimony and the release of New Zealand GDP. The RBA's 29 September meeting is approaching, while the BOJ will also hold a meeting. New Zealand GDP is due on 17 September, with Australia's economic trends and interest-rate outlook set to be the focus.
From the end of this week into next week, AUD/JPY is likely to be influenced by the tug-of-war between developments at the BOJ and expectations of an RBA rate hike. RBA Deputy Governor Hauser said July inflation was stronger than expected, and the RBA Board meeting on 29 September is expected to discuss whether to raise rates. Parliamentary testimony by RBA officials, including Governor Bullock, is scheduled for 18 September, and whether their comments take a hawkish tone will be a key focus.
For NZD/JPY, the main focus will be New Zealand's April-June GDP, due on 17 September. The RBNZ raised rates by 25 bp at its meeting on 2 September, and its statement indicated that the risk of a need for further rate hikes emerging in the future had diminished. Rising oil prices are being viewed in global markets as an inflation risk, and a strong New Zealand GDP result could support the New Zealand dollar. The BOJ's Monetary Policy Meeting is also scheduled for next week, so yen-driven moves are expected.