AUD/JPY Slides Amid BOJ Rate Hike Expectations
The AUD/JPY cross is trading in negative territory near 114.50 on Monday as the Japanese Yen strengthens against the Australian Dollar.
This move comes after Japan's annual core Consumer Price Index (CPI) inflation rose for a third consecutive month in August, indicating that the Bank of Japan (BOJ) may raise interest rates as early as September.
Deputy Governor Ryozo Himino recently delivered hawkish remarks highlighting growing inflation risks, which most market participants expect will lead to a 1.25% policy rate at the upcoming BOJ meeting.
On the other hand, China's Manufacturing Purchasing Managers' Index (PMI) data is expected to provide some support to the Australia-proxy Aussie, as China is a major trading partner to Australia. The NBS reported that China's Manufacturing PMI climbed to 49.8 in August from 49.2 in July.