AUD/JPY aims an establishment above 92.50 as risk-on profile soars, China CPI eyed

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AUD/JPY aims an establishment above 92.50 as risk-on profile soars, China CPI eyed
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AUD/JPY aims an establishment above 92.50 as risk-on profile soars, China CPI eyed – by Sagar_Dua24 AUDJPY BOJ CPI PBOC GDP

k session after climbing above the critical hurdle of 92.30. A decent recovery in the AUD/USD pair has set a bullish ground for the AUD/JPY asset.

The cross has faced immense selling pressure as the Japanese yen failed to capitalize on better-than-anticipated Gross Domestic Product data. The annualized data contracted by 0.8% vs. expected contraction by 1.1% and the prior release of -1.2%. While the quarterly data has contracted by 0.2% against the consensus and the prior release of 0.3% contraction.

Figures are more upbeat than expected but the growth rate is still contracting, which creates a ground for more economic stimulus from the Bank of Japan ahead. This has triggered fears of a decline in inflation ahead as a slowdown in economic activities indicates sluggish demand by the households. has been emphasizing the need of pushing inflation higher. He advocated that a significant rise in wage inflation could spur overall inflation in the Japanese economy.

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