- AUD / JPY is progressing while the Australian dollar is strengthening on IPC data from Australia and China PMI figures.
- Australian treasurer Jim Chalmers pointed out that the markets continue to expect new interest rate reductions despite the increase in inflation.
- The Japanese yen softens in the middle of industrial production and retail data lower than expected from Japan.
AUD / JPY is higher after having recorded gains during the two previous sessions, exchanging approximately 91.30 during Asian hours on Wednesday. The monetary cross is supported by a stronger Australian dollar (AUD), supported by Australia inflation data and the index data of mixed purchasing managers (PMI) of China.
The Australian consumer Price index (CPI) increased by 0.9% in the first row of T1 2025, compared to 0.2% in T4 2024 and exceeding the expectations of an increase of 0.8%, according to the Australian Statistics Bureau (ABS). On an annual basis, the IPC climbed 2.4% in the first quarter, beating forecasts by 2.2%. The monthly ICC was held stable at 2.4% in March from one year to the next, while the average ICC of the Australian reserve bank (RBA) increased by 2.9% from one year to the next.
Despite the stronger impression of inflation, the Australian treasurer Jim Chalmers noted that the markets still provided for interest rate reductions. “The market expects more interest rate drops after inflation figures,” he said, adding that there is “nothing in these figures that would considerably change market expectations”.
Meanwhile, in China, the latest data added to the concerns about economic momentum. The National Bureau of Statistics (NBS) indicated that the PMI manufacturer fell to 49.0 in April from 50.5 in March, falling below the consensus of 49.9 and signaling a return to contraction. The non -manufacturing PMI also slipped to 50.4 from 50.8, missing the 50.7 planned.
On the Japan side, the Japanese yen (JPY) continues to weaken on the back of disappointing economic data. Industrial production in March dropped by 1.1% per month, reversing a gain of 2.3% in February and lacking the expected decline of 0.4%. He marked the second drop in 2025 in the midst of increasing concerns concerning the impact of potential American rates.
Retail sales in Japan increased by 3.1% in annual sliding in March, below the forecasts of an increase of 3.5% but still marking the 36th consecutive month of expansion. Although consumption remains supported by the increase in wages, the slower rate of growth can point out a front wind.
Economic indicator
Average CPI cut RBA (qoq)
The consumer price index (ICC), published by the Australian Statistics Bureau On a quarterly basis, measures the variations in the price of a fixed basket of goods and services acquired by household consumers. Reading the QOQ compares prices in the reference quarter to the previous quarter. The average, which is a measurement of underlying inflation, is calculated as the weighted average of the 70% central distribution of the price changes in all CPI components in order to smooth the data from more volatile components. Generally, high reading is considered optimistic for the Australian dollar (AUD), while a weak reading is considered to be lower.
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