AUD/JPY Drops Below 97.50 as Australia’s Growth Slows
The Australian dollar (AUD) fell against the Japanese yen (JPY) on Monday, with AUD/JPY moving below 97.50 and trading close to 97.30 in Asian hours. The fall came after new economic data from Australia showed slower growth.
Australia’s PMI numbers showed that business activity is still growing but at a weaker pace. The Composite PMI dropped to 52.1 in September from 55.5 in August, its lowest in three months. The Services PMI fell to 52.0 from 55.8, and the Manufacturing PMI eased to 51.6 from 53.0.
The Reserve Bank of Australia (RBA) is watching the situation closely. Unemployment has risen slightly, but the job market remains fairly strong. This could influence the bank’s next move on interest rates.
In Japan, the Bank of Japan (BoJ) kept its interest rate unchanged at 0.5% for the fifth meeting in a row. The bank said Japan’s economy is recovering, but warned of risks from weak global demand and trade issues.
Now, traders are waiting for Japan’s PMI data, the BoJ meeting minutes, and Tokyo’s inflation report to see what direction the AUD/JPY pair may take next.
Impact:
AUD/JPY could fall more if Australia’s economy keeps slowing, while stronger Japanese data might give the yen an advantage.
