- AUD/JPY is struggling around 90.40 but upside remains favored on satisfactory aussie Retail Sales.
- The Retail Sales have landed at 0.9% as expected by the market participants.
- BOJ’s Kuroda seeks wage hikes to keep inflation at desired levels.
The AUD/JPY pair has touched a high of 90.54 in the Asian session after the Australian Bureau of Statistics reported the Retail Sales. The economic data has come in line with the forecasts of 0.9% but lower than the prior print of 1.6%. An aligned Retail Sales data with the preliminary estimates have underpinned aussie against the Japanese yen. Despite soaring inflation and tightening monetary policy, the economy has managed to report decent Retail Sales.
The antipodean is also performing better against Tokyo on active risk-on impulse. Positive market sentiment has strengthened the risk-perceived currencies.
Investors are betting on more rate hikes by the Reserve Bank of Australia (RBA) as mounting inflationary pressures are complicating the situation for the households. Firing oil and commodity prices are affecting the real income of the households and eventually posing challenging tasks for RBA policymakers.
On the Japanese yen front, Japanese Prime Minister Fumio Kishida urged the Bank of Japan (BOJ) on Thursday that the BOJ should make some efforts to achieve the targeted inflation rate of 2%. In response to that, BOJ’s Governor Haruhiko Kuroda has commented that the price rise should be accompanied by wage hikes in to sustain inflation at desired levels. The Japanese yen performed well this week on upbeat Purchase Managers Index (PMI) data. The Manufacturing PMI landed at 53.2, against the forecasts of 52 while the Services PMI was recorded at 51.7, higher in comparison with the estimates of 50.6.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats to 1.0750, eyes on Fedspeak
EUR/USD stays under modest bearish pressure and trades slightly near 1.0750 on Wednesday. Hawkish comments from Fed officials help the US Dollar stay resilient and don't allow the pair to stage a rebound.
GBP/USD struggles to hold above 1.2500 ahead of Thursday's BoE event
GBP/USD stays on the back foot and trades in negative territory below 1.2500 after losing nearly 0.5% on Tuesday. The renewed US Dollar strength on hawkish Fed comments weighs on the pair as market focus shifts to the BoE's policy announcements on Thursday.
Gold fluctuates in narrow range below $2,320
After retreating to the $2,310 area early Wednesday, Gold regained its traction and rose toward $2,320. Hawkish tone of Fed policymakers help the US Treasury bond yields edge higher and make it difficult for XAU/USD to gather bullish momentum.
SEC vs. Ripple lawsuit sees redacted filing go public, XRP dips to $0.51
Ripple (XRP) dipped to $0.51 low on Wednesday, erasing its gains from earlier this week. The Securities and Exchange Commission (SEC) filing is now public, in its redacted version.
Softer growth, cooler inflation and rate cuts remain on the horizon
Economic growth in the US appears to be in solid shape. Although real GDP growth came in well below consensus expectations, the headline miss was mostly the result of larger-than-anticipated drags from trade and inventories.