• AUD/JPY depreciated as BoJ Ueda reiterated that interest rate hikes would proceed gradually.
• BoJ Governor Ueda also emphasized the importance of carefully assessing the impact of FX movements.
• RBA Bullock stated that current interest rates will remain unchanged until the central bank is confident about the inflation outlook.

The AUD/JPY cross has trimmed its daily gains and trades near 99.90 during European trading hours on Monday. Meanwhile, the Japanese Yen (JPY) faced headwinds following remarks from Bank of Japan (BoJ) Governor Kazuo Ueda. Ueda reiterated that interest rate hikes would proceed gradually, contingent on the economy meeting expectations, but did not specify a timeline for future increases.

In a subsequent statement, Ueda emphasized the importance of carefully assessing the impact of foreign exchange (FX) movements on the economy, price forecasts, and associated risks at each policy meeting. He warned that failing to adjust monetary support appropriately could necessitate rapid rate hikes in the future. Ueda refrained from commenting on short-term FX fluctuations.

Japan's Finance Minister Katsunobu Kato issued a warning on Friday, stating that the government will closely monitor the foreign exchange (FX) market with heightened vigilance. Kato emphasized that appropriate measures would be taken to address any excessive movements in the currency.