AUD/JPY Tumbles on Stronger Yen, China Data Offers Partial Support

The AUD/JPY cross traded lower around 114.50 in early European dealings on Monday, despite holding above its 100-day simple moving average.

A stronger Tokyo core CPI for August and hawkish remarks from BoJ officials underpinned the Japanese Yen, with markets eyeing a potential policy rate move to 1.25%.

Japan's annual core Consumer Price Index (CPI) for Tokyo rose for a third straight month in August, reinforcing expectations that the Bank of Japan (BoJ) could proceed with an interest rate hike as early as September.