The Australian Dollar holds gains against the Yen despite China’s July retail sales and industrial production missing forecasts.
The AUD/JPY pair climbed to 113.20 in European trading, extending a two-day rally as the Australian Dollar remained resilient. Weak economic data from China, Australia’s largest trading partner, failed to weigh on the currency cross.
China’s July retail sales grew just 0.6% year-over-year, below the 1.5% forecast and June’s 1.0% rise. Industrial production rose 4.5%, missing the 5.0% consensus and prior 5.3% print. Fixed asset investment contracted 6.7% year-to-date, worse than the 6.2% decline expected.
Strategists expect Australia’s upcoming wage and labor data to have minimal impact on Reserve Bank of Australia policy expectations. Consensus forecasts a 0.8% quarterly wage increase and a 3.2% annual rise for Q2 2026.