AUD Surges Against JPY on Strong Aussie Inflation Data

The Australian Dollar has strengthened against the Japanese Yen for the second consecutive day, reaching around 114.20 during Asian hours on Wednesday.

This comes after Australia's Consumer Price Index (CPI) climbed 3.5% year-over-year in July, beating market forecasts of a 3.2% print.

The AUD/JPY cross has appreciated as the Japanese Yen faces challenges from Japan's expansionary fiscal policy and high national debt.

However, potential losses for the Yen may be limited by growing expectations of further Bank of Japan tightening, with markets currently pricing in a rate hike next month.