AUD/JPY rises above 91.00 following key economic data from Australia, Japan

AUD/JPY advances as the Australian Dollar strengthens on CPI data from Australia and PMI figures from China.
Australian Treasurer Jim Chalmers remarked that markets continue to expect further interest rate cuts despite the inflation uptick.
The Japanese Yen softens amid weaker-than-expected industrial production and retail sales data from Japan.

Akhtar Faruqui FXStreet

AUD/JPY edges higher after registering gains in the previous two sessions, trading around 91.30 during the Asian hours on Wednesday. The currency cross is supported by a stronger Australian Dollar (AUD), buoyed by inflation data out of Australia and mixed Purchasing Managers’ Index (PMI) data from China.

Australia's Consumer Price Index (CPI) rose 0.9% quarter-over-quarter in Q1 2025, up from 0.2% in Q4 2024 and exceeding expectations of a 0.8% rise, according to the Australian Bureau of Statistics (ABS). On an annual basis, CPI climbed 2.4% in Q1, beating the forecast of 2.2%. Monthly CPI held steady at 2.4% in March year-over-year, while the Reserve Bank of Australia’s (RBA) Trimmed Mean CPI rose 2.9% year-over-year.

Despite the stronger inflation print, Australian Treasurer Jim Chalmers noted that markets still anticipate further interest rate cuts. “The market expects more interest rate cuts after inflation figures,” he stated, adding that there’s “nothing in these numbers that would substantially alter market expectations.”

Meanwhile, in China, the latest data added to concerns over economic momentum. The National Bureau of Statistics (NBS) reported that the Manufacturing PMI dropped to 49.0 in April from 50.5 in March, falling below the 49.9 consensus and signaling a return to contraction. The Non-Manufacturing PMI also slipped to 50.4 from 50.8, missing the expected 50.7.

On Japan’s side, the Japanese Yen (JPY) continues to weaken on the back of disappointing economic data. Industrial production in March fell 1.1% month-over-month, reversing a 2.3% gain in February and missing the expected 0.4% decline. It marks the second drop in 2025 amid growing concerns about the impact of potential US tariffs.

Retail Sales in Japan rose 3.1% year-over-year in March, below forecasts of a 3.5% increase but still marking the 36th consecutive month of expansion. Although consumption remains supported by rising wages, the slower pace of growth may signal mounting headwinds.

Economic Indicator

RBA Trimmed Mean CPI (QoQ)

The Consumer Price Index (CPI), released by the Australian Bureau of Statistics on a quarterly basis, measures the changes in the price of a fixed basket of goods and services acquired by household consumers. The QoQ reading compares prices in the reference quarter to the previous quarter. The trimmed mean, which is a measure of underlying inflation, is calculated as the weighted average of the central 70% of the quarterly price change distribution of all CPI components in order to smooth the data from the more-volatile components. Generally, a high reading is seen as bullish for the Australian Dollar (AUD), while a low reading is seen as bearish.

Why it matters to traders?

The quarterly Consumer Price Index (CPI) published by the Australian Bureau of Statistics (ABS) has a significant impact on the market and the AUD valuation. The gauge is closely watched by the Reserve Bank of Australia (RBA), in order to achieve its inflation mandate, which has major monetary policy implications. Rising consumer prices tend to be AUD bullish, as the RBA could hike interest rates to maintain its inflation target. The data is released nearly 25 days after the quarter ends.

BRANDED CONTENT

Finding the right broker for your trading strategy is essential, especially when specific features make all the difference. Explore our selection of top brokers, each offering unique advantages to match your needs.

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

AUD/USD recovers toward 0.7000 amid improving mood

AUD/USD is firming up toward 0.7000 in Asia on Tuesday, helped by improving market mood. A pause in the US Dollar rebound also aids the pair's upside. However, geopolitical risks and caution ahead of AI tech earnings report could limit the pair.

USD/JPY flatlines near 158.50 as markets seek direction

USD/JPY steadies around 158.50 in the Asian trading hours on Tuesday. Traders prefer to wait on the sidelines ahead of Japan’s National Consumer Price Index inflation data later on Friday. Meanwhile, elevated US bond yields provide some support to the US Dollar against the Japanese Yen.

Gold just failed at $4,150. This is the next stop

Gold prices trade without a clear direction on Tuesday, hovering around the $4,170 region per troy ounce and still struggling to regain upside traction following Monday’s pullback. In the meantime, lower US Treasury yields and a marked pullback in the US Dollar come in tandem with the yellow metal’s price action.

Crypto Today: Bitcoin, Ethereum, XRP tick lower amid mixed ETF flows

Bitcoin is trading above $81,000 on Tuesday, aligning with a lethargic tone in the broader cryptocurrency market. Altcoins, including Ethereum and Ripple, reflect Bitcoin’s lock-step price action, trading below $2,400 and $1.30, respectively.

Markets at a turning point: Bitcoin, Gold, FX and Tech react to a heavy macro week

The new trading week opens with a mixed but revealing picture across global markets. Indices, commodities, FX, tech stocks, and cryptocurrencies are all sending one message: risk appetite is alive, but it is cautious, selective, and highly sensitive to macro signals.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.