The AUD/JPY cross is trading lower, hovering around 100.50 during Friday’s Asian session. Verbal intervention from Japanese authorities is lending some support to the Japanese Yen (JPY) against the Australian Dollar (AUD).
China’s economy grew at a slower-than-expected annual rate of 4.6% in the July-September quarter, slightly down from the previous 4.7% reading, according to the National Bureau of Statistics. However, the figures were marginally better than analysts had anticipated. In September, China’s Retail Sales rose by 3.2% year-on-year, exceeding the expected 2.5%, while Industrial Production increased by 5.4%, surpassing both the previous month’s 4.5% and the anticipated 4.6%.
Chinese officials announced they would prompt financial institutions to swiftly implement expansive financial policies, following a meeting on October 16. Any new initiatives aimed at boosting economic growth could benefit the Australian Dollar, given China’s status as a key trading partner.
Meanwhile, the JPY has gained some traction due to remarks from Atsushi Mimura, Japan’s Vice Finance Minister for International Affairs. He emphasized the need to closely monitor foreign exchange movements with a high sense of urgency.
Expectations surrounding the Bank of Japan (BoJ) suggest that interest rates will remain unchanged at the upcoming October meeting, according to a Reuters poll. A slight majority of economists predict the BoJ will maintain the current rate through December, with nearly 90% forecasting an increase to 0.5% by the end of March.
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