AUD Dives to Six-Month Low vs JPY Amid Slowing Inflation, Intervention Fears

The Australian Dollar (AUD) has reached a six-month low against the Japanese Yen (JPY), following the release of Australia's consumer inflation figures. The data showed that the Consumer Price Index (CPI) rose by 0.4% in August, down from 1% in the previous month. This led to a decline in bets for another interest rate hike by the Reserve Bank of Australia (RBA).

The AUD/JPY cross has been under heavy selling pressure for two consecutive days, with bears waiting for a sustained break below the 109.00 mark before positioning for further losses. The Japanese Yen is gaining support from looming intervention fears and hawkish Bank of Japan (BoJ) bets.

The US-Japan joint messaging on FX depreciation has been taken seriously by markets, following US President Donald Trump's concerns about the JPY's depreciation to Prime Minister Sanae Takaichi. This has further weighed on the AUD/JPY cross.