AUD/JPY Strengthens on China's Surprising Economic Data

The Australian Dollar (AUD) gained strength against the Japanese Yen (JPY) in Tuesday's early European session, reaching around 114.60.

This comes as stronger-than-expected Chinese economic data provided support to the AUD, with China's Manufacturing Purchasing Managers' Index (PMI) jumping to 51.5 in August from 50.9 in July, beating market consensus of 50.9.

The Bank of Japan (BoJ) is also pricing in a nearly 73% probability of a rate hike later this month, but analysts suggest there needs to be a stronger follow-through by the central bank.