AUD/JPY consolidates above 85.50 ahead of Aussie Retail Sales
|- AUD/JPY surrenders early gains in the initial Asian trading hours.
- Australia Q3 PPI, Retail Sales, hawkish RBA governs aussie movement.
- The Japanese yen makes a recovery despite a dovish BOJ, mixed data.
AUD/JPY edges lower on Friday in the early Asian session. The pair continued to move in between 0.8550 and 0.8570 for the two sessions. As of writing, the AUD/JPY pair is trading at 85.55, down 0.11% for the day.
Investors remained concerned about the global growth prospects on dismal economic data amidst central banks verdicts. The Japanese yen managed to attract buying interest on its safe haven appeal despite Bank of Japan’s (BOJ) dovish tone. In addition to that, the comments from BOJ Governor Haruhiko Kuroda on the depreciation of the yen did not deter the gains in the currency.
The Unemployment Rate in Japan came at 2.8% in September, unchanged from the previous two months and in accordance with market consensus. The Industrial Production dropped 5.4% in September much below the market expectations of 3.2%.
It is worth noting that S&P 500 Futures are trading at 4,575.35, down 0.27% for the day.
The riskier asset hurted amid reduced risk appetite, which weighs on the prospects of the aussie. As per the latest Reuters poll, 21 out of 24 economists expected a rate hike to 0.25% in Q2 2023, earlier than the RBA’s 2024 expectations. This, in turn uplifts the sentiment around the Australian dollar.
As for now, traders are bracing up for the Australian Retail Sales data to take fresh trading impetus.
AUD/JPY additional levels
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