{"id":30409,"date":"2026-03-11T08:58:17","date_gmt":"2026-03-11T08:58:17","guid":{"rendered":"https:\/\/www.vtmarketsglobal.com\/en\/uncategorized\/30409\/"},"modified":"2026-03-11T08:58:17","modified_gmt":"2026-03-11T08:58:17","slug":"aud-jpy-extends-a-four-day-climb-to-mid-113s-reaching-a-1990-high-on-rba-hike-bets-weak-yen","status":"publish","type":"post","link":"https:\/\/www.vtmarketsglobal.com\/en\/live-updates\/30409\/","title":{"rendered":"AUD\/JPY extends a four-day climb to mid-113s, reaching a 1990 high on RBA hike bets, weak yen"},"content":{"rendered":"AUD\/JPY rose for a fourth day in a row in Wednesday\u2019s Asian session, reaching its highest level since 1990. It traded around the mid-113.00s, up 0.90% on the day.\n\nThe move followed firmer expectations that the Reserve Bank of Australia could raise interest rates as soon as next week. On Tuesday, RBA Deputy Governor Andrew Hauser said there would be a genuine debate on whether to raise rates at the meeting next week, due to concern about a possible war-driven rise in inflation.\n\n

Drivers Behind The Move<\/h3>\nThe Japanese yen weakened as the chance of an immediate Bank of Japan rate rise eased. Higher oil prices raised worries about slower growth and higher inflation in Japan, a major energy importer.\n\nRising energy costs were linked to the risk of stagflation, which could complicate BoJ policy normalisation. This kept pressure on the yen and supported AUD\/JPY.\n\nSome market participants expected Japanese authorities to act to limit further falls in the yen. Attention now turns to the RBA policy meeting next Tuesday.\n\nA correction dated March 11 at 08:18 GMT clarified the pair reached its highest level since 1990, not an all-time peak.\n\n

Looking Back One Year<\/h3>\nLooking back at that period a year ago, we saw the AUD\/JPY cross break above 113.00, driven by a clear divergence in central bank policy. The market was correctly pricing in imminent rate hikes from the Reserve Bank of Australia while the Bank of Japan was expected to remain passive. This was the classic setup for a strong carry trade.\n\nThat fundamental trend did indeed play out, as the RBA hiked its cash rate multiple times through 2025 while the BoJ only exited its negative interest rate policy late in the year. This widening interest rate differential provided the fuel for the pair’s sustained rally. We can see from historical charts that buying during any minor dips proved to be a very profitable strategy throughout last year.\n\nToday, on March 11, 2026, the situation has matured, with the pair trading significantly higher near 118.00. The RBA cash rate is now holding steady at 4.85% after inflation proved sticky, while the BoJ\u2019s policy rate sits at just 0.10%. The explosive upward momentum has slowed as the bulk of the central bank divergence is now priced in.\n\nFor derivative traders, this means the simple strategy of buying calls may be less effective than it was when momentum was high. Instead, we should consider strategies that benefit from the large interest rate differential, such as selling out-of-the-money JPY call\/AUD put options. This collects premium while the pair likely trades in a more stable, albeit elevated, range.\n\nThe significant yield gap of over 4.75% still makes being long the Australian dollar attractive for its carry, or positive income. This environment favors strategies like buying AUD\/JPY futures contracts and rolling them to collect the funding rate. Any pullbacks should be viewed as opportunities to enter these carry positions at better levels.\n\nWe must remain vigilant for any verbal intervention from Japanese finance officials, which caused sharp but temporary drops in 2025 when the yen weakened too quickly. Furthermore, Australian inflation data is now the key driver; any signs of a faster-than-expected cooling could bring forward RBA rate cut expectations and unwind this trade.\n\nCreate your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b>\n

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Start trading now – Click here<\/a> to create your real VT Markets account <\/strong> <\/p>\r\n","protected":false},"excerpt":{"rendered":"

AUD\/JPY hit highest since 1990 as RBA hike bets rose, BoJ hike odds eased, yen weak.<\/p>\n","protected":false},"author":38,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46],"tags":[],"class_list":["post-30409","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":[],"aioseo_notices":[],"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"josephine","author_link":"https:\/\/www.vtmarketsglobal.com\/en\/author\/josephine\/"},"_links":{"self":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/30409","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/comments?post=30409"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/30409\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=30409"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=30409"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=30409"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}