AUD/JPY holds near 97.00 as Australia Q2 GDP, China PMI beat forecasts

• AUD/JPY appreciates as GDP grew 0.6% QoQ in Q2, against the expected 0.5% growth.
• China’s Caixin Services PMI rose to 53.0 in August, came above the 52.5 expected.
• Japan’s Jibun Bank Services PMI stood at 53.1, while Composite PMI rose to 52.0 in August.

AUD/JPY continues its winning streak that began on August 21, trading around 97.00 during the Asian hours on Wednesday. The currency cross gains ground following the release of Australia’s Q2 Gross Domestic Product and China’s Caixin Services Purchasing Managers’ Index (PMI).

The Australian Bureau of Statistics (ABS) reported that Australian economy expanded 0.6% quarter-over-quarter in the second quarter, following the 0.3% growth in Q1 (revised from 0.2%). This reading came in stronger than the expectations of 0.5% expansion. The annual Q2 GDP grew by 1.8%, compared with the 1.4% growth in Q1 (revised from 1.3%), and was above the consensus of a 1.6% increase.

Meanwhile, China’s Caixin Services Purchasing Managers' Index unexpectedly rose to 53.0 in August from 52.6 in July. The data came in above the market forecast of 52.5 in the reported period. The data reflected the strongest expansion in the services sector since May 2024.

In Japan, the Jibun Bank Services PMI came in at 53.1 in August, down from July’s 53.6 but surpassing the market expectations of 52.7 reading. It marked the fifth consecutive month of growth in the services sector, driven primarily by the sharpest increase in new orders since February.

Meanwhile, Jibun Bank Composite PMI climbed to 52.0 in August, from 51.6 prior and came above the flash estimate of 51.9. The reading signaled the fifth consecutive month of private sector growth and the strongest pace since February.

On Tuesday, Bank of Japan (BoJ) Deputy Governor Ryozo Himino said that the central bank should keep raising rates gradually, while cautioning that elevated global risks leave little room for aggressive tightening.