AUD/JPY aims to overstep 94.00 as Australian monthly CPI slips to 6.8%
|- AUD/JPY is eyeing to cross 94.00 amid a decline in Aussie's August CPI to 6.8%.
- Monthly CPI covers updated prices for between 62-73% of the weight of the quarterly CPI basket.
- The unscheduled bond-buying program and fading impact of BOJ’s intervention have weakened yen.
The AUD/JPY pair is marching north to surpass the critical hurdle of 94.00 amid a first-time release of the Australian monthly inflation indicator. August's reading has remained lower at 6.8% vs. July's reading of 7%.
In order to provide a timelier indication of price pressures, the Australian Bureau of Statistics (ABS) has introduced a monthly Consumer Price Index (CPI) indicator that inculcates the same data used in quarterly CPI mechanics. Each month will include updated prices for between 62 and 73 percent of the weight of the quarterly CPI basket, as reported by ABS.
It is worth noting that the quarterly Australian inflation data was recorded at 6.1% for the second quarter. The Reserve Bank of Australia (RBA) is continuously working on taming the soaring price pressures. RBA Governor Philip Lowe has already accelerated its Official Cash Rate (OCR) to 2.35%.
On Wednesday, the aussie dollar rebounded sharply after the release of better-than-projected Aussie monthly Retail Sales data. The economic data landed at 0.6%, higher than the estimates of 0.4%, but lower than the prior release of 1.3%.
Meanwhile, the Japanese yen is losing its grip on the risk barometer as the impact of the Bank of Japan (BOJ)’s intervention in the currency markets is fading away. It seems that the BOJ is highly needed to restrict policy easing to safeguard yen from a further impulsive wave of depreciation. Also, an unscheduled bond-purchase program by the BOJ has weakened the yen bulls.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.