- AUD/JPY loses ground as Shigeru Ishiba has won the leadership race to become Japan’s prime minister.
- The Tokyo Consumer Price Index rose 2.2% YoY in September, down from a 2.6% increase in August.
- Australian Treasurer Jim Chalmers views China’s new stimulus measures as a “really welcome development.”
AUD/JPY breaks its winning streak that began on September 16, trading around 98.60 during the early European session on Friday. The Japanese Yen (JPY) gains ground as former Defense Chief Shigeru Ishiba won the Liberal Democratic Party’s (LDP) presidential election to become Japan’s prime minister. However, the JPY received downward pressure due to the rising concerns over the Bank of Japan’s (BoJ) interest rates outlook.
On Friday, The Tokyo Consumer Price Index (CPI) increased 2.2% year-over-year in September, down from a 2.6% rise in August. Meanwhile, the CPI excluding fresh food and energy climbed 1.6% YoY in September, unchanged from the previous reading. The CPI excluding fresh food increased 2.0% as expected, compared to the previous rise of 2.4%.
The AUD/JPY cross may receive upward support following the news of further stimulus from China, its largest trading partner, along with the dovish Federal Reserve’s (Fed) policy outlook, which lifted market sentiment for riskier currencies like the Australian Dollar (AUD).
Australian Treasurer Jim Chalmers is currently in China to strengthen economic ties between the two nations. During his visit, Chalmers held candid and productive discussions with the National Development and Reform Commission (NDRC). He highlighted China’s economic slowdown as a key factor in weaker global growth while welcoming the country’s new stimulus measures as a “really welcome development.”
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