AUD/JPY Surges as China Data Beats Expectations

The AUD/JPY cross surged to near 114.60 on Tuesday during the early European session, buoyed by stronger-than-expected Chinese economic data.

RatingDog's release of China's Manufacturing Purchasing Managers' Index (PMI) revealed a jump to 51.5 in August from 50.9 in July, exceeding market consensus.

This figure provided support for the Australia-proxy Australian Dollar against the Japanese Yen.

Market expectations are now pricing in nearly a 73% probability of a hike from the Bank of Japan (BoJ) later this month, but analysts suggest there needs to be a much stronger follow-through by the central bank.