Forex
Home›Forex›Major Pairs›Australian Dollar slips to one-week low vs Yen after s…
Australian Dollar slips to one-week low vs Yen after softer CPI
Australia’s June CPI rose 3.8% year over year, down from 4.0% in May, and the monthly print fell 0.1% for a second straight month, prompting traders to scale back expectations of a near-term RBA hike.
FXStreet reports the AUD/JPY cross extended its retracement slide, moving down from the 114.65 zone and pushing spot prices to an over one-week low around 113.60 in the last hour.
The decline accelerated after Australian Bureau of Statistics data showed June CPI increased 3.8% year over year, compared with 4.0% in May, while the monthly CPI print missed forecasts and fell 0.1% for a second straight month.
FXStreet says the softer inflation reading led traders to unwind expectations for a near-term Reserve Bank of Australia rate hike, weighing on the Australian Dollar, while the yen found support as speculation grows that Japanese authorities may step in to support the currency.
The report also notes that the interest rate gap between Japan and other major economies, including Australia, is limiting upside for the yen, and investors may wait for the Bank of Japan policy decision on Friday before placing fresh directional bets.