AUD Gains Against JPY as China's Inflation Data Surpasses Expectations
The Australian Dollar (AUD) gained against the Japanese Yen (JPY) after China's inflation data was released. The Consumer Price Index (CPI) rose 0.8% year-over-year in August, matching market expectations and increasing from July's 0.5%. On a monthly basis, CPI inflation increased by 0.4%, surpassing the predicted 0.3% gain.
The Producer Price Index (PPI) also climbed 3.8% year-over-year in August, exceeding the expected 3.7% increase and following July's 3.5%. The AUD/JPY cross fell as the JPY gained strength after US Treasury Secretary Scott Bessent warned traders against betting against the currency.
Bessent stated that he has a 'pretty good insight' into the Bank of Japan's (BoJ) future actions and currency interventions. Analysts at UOB Group revised their 1-3 week view to be more bearish, citing an unexpectedly sharp move in USD/JPY.