AUD/JPY drops to near 92.50 following Tokyo’s inflation, Aussie Retail Sales data
AUD/JPY loses ground as the Japanese Yen appreciates following Tokyo’s stronger core inflation data.
The JPY draws support from safe-haven demand after the US federal Court ruling allowing Trump's tariffs to take effect.
Australian Retail Sales fell 0.1% MoM in April, against the expected 0.3% growth.
AUD/JPY extends its losses for the second successive day, trading around 92.50 during the Asian hours on Friday. The currency cross depreciates nearly 0.50% as the Japanese Yen (JPY) gains ground against its peers after Tokyo’s core inflation came in stronger than expected. The upbeat data reinforced expectations of the Bank of Japan’s (BoJ) 25 basis point rate hike in July.
On Friday, the headline Tokyo Consumer Price Index (CPI) rose 3.4% year-over-year in May, as compared to 3.5% in the previous month. Meanwhile, Tokyo Core CPI excluding Fresh Food came in at 3.6% YoY, following a 3.4% increase in April. The index has surpassed median market forecasts for a 3.5% gain.
The AUD/JPY cross loses ground as the safe-haven demand for the JPY strengthens after the US Court of Appeals for the Federal Circuit in Washington, on Thursday, temporarily allowed Trump's tariffs to take effect.
On Wednesday, a three-judge panel at the Court of International Trade in Manhattan condemned Trump’s usage of the Carter-era International Emergency Economic Powers Act (IEEPA) to justify his international agenda, quoting it as exploitation of the president’s authority. The federal court found that Trump exceeded his authority in imposing broad import tariffs and declared the executive orders issued on April 2 unlawful.
Moreover, the AUD/JPY cross depreciates as the Australian Dollar (AUD) struggles after the release of the seasonally adjusted Australian Retail Sales, which declined 0.1% month-over-month in April, against the expectations of remaining consistent at 0.3% growth. Meanwhile, the monthly Building Permits fell by 5.7%, against the expected increase of 3.1%.
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