Softer-than-expected inflation figures weigh on the Australian Dollar, lifting the Japanese Yen amid intervention speculation.
The Australian Dollar fell 0.61% against the Japanese Yen to around 113.60 on Wednesday, extending losses after weaker-than-expected domestic inflation data. The decline reflects broad selling pressure on the AUD as traders reassess the Reserve Bank of Australia’s policy outlook.
Markets had anticipated firmer inflation prints, which could have supported further RBA tightening. The softer data contrasts with recent trends, raising questions about the pace of price growth in Australia. Meanwhile, the JPY found support from persistent speculation over potential currency intervention by Japanese authorities.
AUD/JPY remains under pressure as investors weigh the implications of the inflation miss against broader risk sentiment and central bank divergence.