According to Jinshi, Societe Generale said that the Australian dollar against the yen may further strengthen under the support of favorable interest rate differentials, and the current Australian dollar against the yen has reached a 33-year high. The bank's foreign exchange strategist Jukes pointed out in the report that the Australian dollar is supported by strong data including Wednesday's retail sales data, and the front end of the current curve shows that the Australian dollar has a 50% chance of another interest rate hike this year. He also said that as long as the interest rate differential remains large, the yen will fall further, and he believes that the yen will not rebound until the Federal Reserve introduces an easing policy.
