AUD Plunges to Six-Month Low vs JPY Amid Unimpressive CPI Data
The Australian Dollar (AUD) fell to a six-month low against the Japanese Yen (JPY) on Wednesday, following the release of unimpressive Consumer Price Index (CPI) data. The AUD/JPY cross has been under heavy selling pressure for two consecutive days, with bears awaiting a sustained break below 109.00 before positioning for further losses.
The Australian Bureau of Statistics reported that the headline CPI rose 0.4% in August, down from 1% recorded in the previous month. The yearly rate accelerated to 4%, while the Trimmed Mean CPI held steady at 3.6% YoY during the reported month.
Australia's Reserve Bank (RBA) has been under pressure to cut interest rates after Governor Bullock's dovish comments, undermining support for the AUD and exerting downward pressure on the AUD/JPY cross.
On the other hand, China's official PMIs showed growth in both manufacturing and services sectors in September, but this had little impact on the AUD. The JPY draws support from looming intervention fears and hawkish Bank of Japan (BoJ) bets, with policymakers debating faster interest rate hikes amid growing concern over inflation risks.