AUD/JPY: Mildly bid despite above-forecast Japanese inflation data
- AUD/JPY is flashing green despite upbeat Japanese data.
- Japan's CPI inflation for November bettered estimates but stayed well below BOJ's price target.
- Yen is struggling to draw bids amid risk-on action in the equity markets.
AUD/JPY is looking to extend the two-day winning streak despite te better-than-expected Japanese inflation data.
At press time, the pair is trading at 75.37, representing a 0.12% gain on the day, having logged 0.10% and 0.31% gains on Wednesday and Thursday, respectively.
Japan CPI beats estimates
Japanese inflation, as represented by the consumer price index (CPI), rose 0.5% year-on-year in November, beating the expected rise of 0.2% by a big margin.
The core CPI, which excludes food and energy prices, rose 0.8% in November from a year earlier, compared to an expected rise of 0.6% following October 0.7% uptick.
While inflation bettered estimates, it remained well below the Bank of Japan's (BOJ) 2 percent price objective and is failing to draw bids for the Yen.
Years of massive stimulus program have failed to accelerate inflation and has left the BOJ with low ammunition to combat the next round of recession or slowdown.
Risk-on
The US stocks hit a new record high on Thursday reportedly due to trade optimism and gains in technology shares. The risk-on sentiment could be keeping the anti-risk Yen on the defensive.
If the bullish tone in equities remains intact on Friday, AUD/JPY will likely rise above 75.50.
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
