AUD Plunges to Six-Month Low vs JPY After Dovish Aussie CPI Report

The Australian Dollar tumbled to a six-month low against the Japanese Yen on Wednesday following the release of Australia's consumer inflation figures. The AUD/JPY cross fell after the data showed that headline Consumer Price Index (CPI) rose only 0.4% in August, down from 1% recorded in the previous month.

The yearly rate did accelerate from 3.5% in July to 4%, but the Trimmed Mean CPI held steady at 3.6% YoY during the reported month. This data does little to revive bets for another interest rate hike by the Reserve Bank of Australia (RBA), and Governor Bullock's dovish comments on Tuesday continue to undermine the Australian Dollar.

Australian bulls were unable to shrug off China's official PMIs, which showed business activity in both manufacturing and services sectors recorded growth in September. However, the Japanese Yen draws support from looming intervention fears and hawkish Bank of Japan (BoJ) bets.