AUD/JPY surpasses 92.50 ahead of Aussie GDP

• AUD/JPY has touched a high of 92.55 as investors await Aussie GDP.
• A downward print at 0.7% is expected vs. 3.4% previously recorded on a quarterly basis.
• The upbeat Japan employment data failed to cheer the Japanese bulls.

The AUD/JPY pair has overstepped 92.50 despite investors expecting a slippage in the Gross Domestic Product (GDP) numbers to be reported by the Australian Bureau of Statistics in the Asian session. The quarterly GDP is seen as extremely lower at 0.7% against the prior print of 3.4%. Also, the annual GDP numbers would tumble to 3% in comparison with the former figure of 4.2%.

An underperformance from the aussie economic data might put some pressure on the risk barometer, however, the ongoing ultra-loose monetary policy by the Bank of Japan (BOJ) will keep the Japanese yen on the tenterhooks.

The antipodean is performing better against yen as investors are betting over more rate hike announcements by the Reserve Bank of Australia (RBA) as mounting inflationary pressures is complicating the situation for the households. Firing oil and commodity prices are affecting the real income of the households and eventually posing challenging tasks for RBA policymakers.

The risk barometer has remained stronger this week despite the upbeat employment data from the Japanese economy. The Statistics Bureau of Japan reported the Jobs/Applicants Ratio at 1.23% against the prior print of 1.22%. Also, the Unemployment Rate landed at 2.5% against the prior print of 2.6%. The tight labor market in Japan is not sufficient to force the BOJ to feature even a neutral stance. The BOJ will stick to its ultra-loose monetary policy till it finds sufficient evidence of higher growth forecasts.