|

AUD/JPY keeps the red below mid-90.00s after mostly upbeat Chinese macro data

  • AUD/JPY attracts fresh sellers and retreats further from over a one-week high set on Tuesday.
  • Trade uncertainties continue to weigh on investors’ sentiment and underpin the safe-haven JPY.
  • US-China trade tensions overshadow upbeat Chinese data and do little to support spot prices.

The AUD/JPY cross drifts lower during the Asian session on Wednesday and moves away from over a one-week high, around the 91.40 region touched the previous day. Spot prices stick to negative bias below the mid-90.00s and move little in reaction to mostly upbeat Chinese macro releases.

The official data published by the National Bureau of Statistics (NBS) showed that China’s economy expanded at an annual rate of 5.4% in the first quarter (Q1) of 2025 compared to the market forecast of 5.1%. On a quarterly basis, however, Chinese economic growth slowed from 1.6% to 1.2%, missing consensus estimates for a 1.4% print. Meanwhile, China’s annual March Retail Sales jumped by 5.9% vs. the 4.2% expected and 4% prior, while Industrial Production came in at 7.7% vs. 5.6% estimate and February’s 5.9%.

Furthermore, the Fixed Asset Investment advanced 4.2% year-to-date (YTD) year-over-year (YoY) in March vs 4.1% expected and 4.1% previous. However, the rapidly escalating US-China trade war, to a larger extent, overshadows the upbeat data and does little to provide any meaningful impetus to the China-proxy Australian Dollar (AUD). Moreover, persistent safe-haven demand, along with bets that the Bank of Japan (BoJ) will hike interest rates further, underpins the Japanese Yen (JPY) and weighs on the AUD/JPY cross.

Meanwhile, the Reserve Bank of Australia (RBA) minutes released on Tuesday suggested that policymakers remain cautious about further interest rate cuts amid global economic uncertainty. This might hold back traders from placing aggressive bearish bets around the AUD and help limit the downside for the AUD/JPY cross. Traders now look forward to monthly employment details from Australia, due for release during the Asian session on Thursday, which will play a key role in influencing the near-term trajectory for the AUD.

Economic Indicator

Gross Domestic Product (YoY)

The Gross Domestic Product (GDP), released by the National Bureau of Statistics of China on a monthly basis, is a measure of the total value of all goods and services produced in China during a given period. The GDP is considered as the main measure of China’s economic activity. The YoY reading compares economic activity in the reference quarter compared with the same quarter a year earlier. Generally speaking, a rise in this indicator is bullish for the Renminbi (CNY), while a low reading is seen as bearish.

Read more.

Last release: Wed Apr 16, 2025 02:00

Frequency: Quarterly

Actual: 5.4%

Consensus: 5.1%

Previous: 5.4%

Source:

Author

Haresh Menghani

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

More from Haresh Menghani
Share:

Editor's Picks

AUD/USD falls to near 0.7100 after slipping below 50-day EMA

AUD/USD depreciates after registering minor gains in the previous day, trading around 0.7120 during the Asian hours. The technical analysis of the daily chart shows the pair consolidating sideways within a rectangle pattern, as neither bulls nor bears gain control. The AUD/USD pair is holding a slight bearish tone however as it sits beneath both the nine-day and 50-day EMAs.

160.00: USD/JPY back near intervention territory after upbeat US jobs report

US Nonfarm Payrolls beat expectations by a wide margin in May, with 172K jobs added. The US Dollar rebounds after the release, helping USD/JPY recover from its intraday lows. Warnings from Japanese authorities continue to limit upside potential near the 160.00 threshold.

Gold targets $4,300 amid stronger Dollar

Gold faces increasing selling interest and navigates the area of three-month lows near the $4,300 mark per troy ounce on Friday. The precious metal’s decline comes as traders assess the stronger-than-expected NFP, while the bid bias in the Greenback and higher US Treasury yields also collaborate with the retracement.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano (ADA) price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit.

Week ahead – Fed countdown begins amid US inflation data and geopolitical risks

Fed Chair Warsh’s first meeting approaches as key US inflation data could reshape expectations. Oil prices remain elevated as US-Iran talks continue; tariffs also return to the spotlight. ECB is expected to hike; will it be a one-off move or is July live?

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.