AUD/JPY climbs to near 91.40 on stronger-than-projected Australian CPI and Retail Sales

AUD/JPY jumps to near 91.40 on higher Australian inflation and Retail Sales data.
Australian inflation increased to 7.4%, and Retail Sales soared to 1.4% for November.
China’s reopening from the Covid restrictions will likely boost Australian economic growth by around 1.0%.

Sagar Dua FXStreet

The AUD/JPY pair has sensed a stellar buying interest as the Australian Bureau of Statistics has reported higher-than-anticipated monthly Consumer Price Index (CPI) (Nov) data. The price Index in the Australian economy has landed at 7.4% that the consensus of 7.3%, and the former release of 6.9%. Apart from that, monthly Retail Sales (Nov) have jumped to 1.4% against the projections of 0.6%.

Stronger-than-anticipated inflation and retail demand by households are going to compel the Reserve Bank of Australia (RBA) to continue hiking interest rates further to tame soaring inflation. The Official Cash Rate (OCR) of the RBA is 3.10%.

Meanwhile, the reopening of China after a stretched lockdown due to the Covid-19 epidemic has strengthened the Australian Dollar. Economists at JP Morgan believe that China’s reopening from the Covid restrictions will likely boost Australian economic growth by around 1.0%.

Ultra-pace adopted for reopening of the economy by the Chinese administration has forced think tanks of the market to revise their growth projections on the upside. Analysts at Morgan Stanley have raised their forecast for China’s GDP this year to above 5.0%. A note from Morgan Stanley states that removing barriers to the housing/property sectors and recovering from COVID zero will strengthen China's economic recovery, which will solidify starting from the second quarter of CY2023. It is worth noting that the Chinese administration is easing property and tech sector regulations.

On the Tokyo front, the Japanese yen sensed pressure on a lower-than-projected jump in Tokyo’s Consumer Price Index (CPI). The headline annual CPI has landed at 4.0%, lower than the consensus of 4.5% but higher than the prior release of 3.8%. While the core CPI has remained in line with expectations at 2.7%.

AUD/JPY

Overview
Today last price	91.16
Today Daily Change	0.00
Today Daily Change %	0.00
Today daily open	91.16

Trends
Daily SMA20	90.14
Daily SMA50	92.04
Daily SMA100	93.36
Daily SMA200	93.23

Levels
Previous Daily High	91.3
Previous Daily Low	90.78
Previous Weekly High	90.99
Previous Weekly Low	87.41
Previous Monthly High	93.81
Previous Monthly Low	87.02
Daily Fibonacci 38.2%	91.11
Daily Fibonacci 61.8%	90.98
Daily Pivot Point S1	90.86
Daily Pivot Point S2	90.56
Daily Pivot Point S3	90.34
Daily Pivot Point R1	91.38
Daily Pivot Point R2	91.6
Daily Pivot Point R3	91.9

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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