Bank of Japan and Reserve Bank of Australia jointly launch Asia-Pacific central bank decision week

Golden Ten Data reported on June 16 that the Super Central Bank Week is about to begin, with meetings of the Bank of Japan and the Reserve Bank of Australia set to reveal how authorities view the Middle East conflict following the latest US-Iran ceasefire. The market widely believes that a rate hike by the Bank of Japan is a foregone conclusion, with the focus turning to how the yen will respond while still at risk of intervention. TD Securities strategists said that a rate hike alone cannot support the yen's performance. They believe the Bank of Japan needs to adopt a more hawkish policy stance, accelerate the pace of tightening, and raise the terminal interest rate in order to effectively curb the yen's weakness. Meanwhile, the Reserve Bank of Australia is expected to pause its rate hikes after three consecutive rounds of increases. Nomura analysts believe the Reserve Bank of Australia will not easily declare that the inflation target has been achieved, and they do not expect the central bank to provide much forward-looking guidance. Any sign that the outlook for economic growth is darkening could put pressure on the Australian dollar.