AUD/JPY consolidates gains around 84.80 amid risk-on sentiment
|- AUD/JPY locks in some gains in the Asian session.
- AUD gains on improved risk-sentiment, upbeat economic outlook.
- Yen suffers from fragile economic recovery prospects.
The AUD/JPY cross-currency pair edges higher on the last trading week on Friday. The pair touched the 85.02 mark in the previous session, however, it falters quickly to the daily lows of 84.62.
At the time of writing, AUD/JPY trades at 84.12, up 0.07% for the day.
Investors remain unfazed by the US higher inflation rate, which came at the highest since August 2008. The higher readings fail to provide any meaningful traction in the US dollar. The improved risk sentiment helps Aussie gains.
It is worth noting that S&P 500 Futures were trading at 4,239, up 0.47% for the day.
Commodity prices also went up, with Gold prices remaining elevated to the $1,900 mark. Higher commodity prices help commodity-linked AUD to gain against the majors.
On the economic side, the Reserve Bank of Australia’s Assistant Governor Chris Kent said that the Australian economy is in good shape and recovered well from the pandemic. The pricing pressure remains subdued, which will keep the central bank’s monetary policy very stimulative until the dual mandate of full employment and consistent inflation has been achieved.
Meanwhile, the lockdown has been lifted in Melbourne with some restrictions, as no new covid-19 cases have been reported. This, in turn, boosted the sentiment around the aussie.
On the other hand, the yen remained submissive, despite the Gross Domestic Product (GPD) shrank at 3.9% against the market consensus and avoiding the fear of a double-dip recession. However, a slower vaccination rollout program and lockdown restriction kept the currency pressurized.
The market dynamics continue to influence the pair’s performance in the absence of any major fundamental news.
AUD/JPY additional levels
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.