AUD/JPY Cross Weakens Amid Rising Japan Inflation

The AUD/JPY cross softened to around 109.40 in Friday's early European session as Japan's Tokyo inflation gauge rose sharply in September, bolstering the case for further interest rate hikes from the Bank of Japan.

Data released by the Statistics Bureau of Japan showed that the headline Tokyo Consumer Price Index (CPI) rose 2.7% in September, versus 1.9% prior.

Masato Koike, senior economist at Sompo Institute Plus, anticipated the BoJ to raise its policy interest rate in December, citing core inflation acceleration due to rising energy costs and second-round effects.