AUD/JPY trims losses near 112.50 as RBA hikes official cash rate to 4.35%

AUD/JPY pared losses near 112.65 as the Reserve Bank of Australia raised the Official Cash Rate by 25 bps to 4.35%, supporting the Australian dollar. Traders awaited Governor Michele Bullock’s press conference for further guidance. The RBA warned of heightened uncertainty and said fallout from the Iran war would shave about 0.5 percentage points off 2026 growth, with annual growth halving to 1.3% this year. At the same time, suspected intervention by Japan’s Ministry of Finance and the Bank of Japan to strengthen the yen has put the JPY on the defensive, limiting AUD gains and raising volatility in the cross. The net market impact is mixed: the RBA hike is AUD‑supportive, but JPY intervention and safe‑haven flows cap upside for AUD/JPY and keep traders cautious.