- The AUD/JPY attracts new sellers and goes back even more from a maximum of more than a week reached on Tuesday.
- Commercial uncertainties continue to weigh in the feeling of investors and support the safe refuge JPY.
- Commercial tensions between the US and China Eclipsan China’s optimistic data and do little to support cash prices.
The Aud/JPY crossing goes back during the Asian session on Wednesday and moves away from a maximum of more than a week, around the 91.40 region reached the previous day. Cash prices are maintained with a negative bias below 90.00 and react little to the mostly optimistic macroeconomic data of China.
The official data published by the National Statistics Office (NBS) showed that China’s economy expanded at an annual rate of 5.4% in the first quarter (Q1) of 2025 compared to the market forecast of 5.1%. However, in quarterly terms, Chinese economic growth slowed from 1.6%to 1.2%, without complying with consensus estimates of 1.4%. Meanwhile, March retail sales in China increased 5.9% compared to 4.2% expected and the previous 4%, while industrial production stood at 7.7% compared to 5.6% estimated and 5.9% in February.
In addition, the investment in fixed assets advanced 4.2% so far this year (YTD) interannual (yoy) in March compared to 4.1% expected and the previous 4.1%. However, the commercial war between the US and China, which is very intensifying, largely eclipses the optimistic data and recently to provide significant impulse to the Australian dollar (AUD) as Proxy of China. In addition, the persistent demand for safe refuge, along with the bets that the Bank of Japan (Boj) will further increase interest rates, support the Japanese Yen (JPY) and weighs on the aud/JPY crossing.
Meanwhile, the minutes of the Bank of the Australian Reserve (RBA) published on Tuesday suggested that those responsible for monetary policy remain cautious with respect to future cuts of interest rates in the midst of global economic uncertainty. This could stop the operators to carry out aggressive bassists around the AU and help limit the decline for the Aud/JPY crossing. The operators now expect the monthly job details of Australia, which will be published during the Asian session on Thursday, and that will play a key role in influencing the short -term trajectory of the AU.
Economic indicator
Gross Domestic Product (Yoy)
The gross domestic product published by the Chinese National Statistics Office It is a measure of the total value of goods and services produced by China. GDP is considered a wide measure of economic activity and indicates the growth rate of the economy of a country. Since the Chinese economy influences the world economy, this indicator impacts the currency market. A high reading is positive or bullish for the CNY, while a minor reading is negative or bassist.
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Last publication:
LIÉ APR 16, 2025 02:00
Frequency:
Quarterly
Current:
5.4%
Dear:
5.1%
Previous:
5.4%
Why is it important for operators?
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
