AUD/JPY tumbles below 90.00 on souring market mood

• AUD/JPY is falling sharply after violating two day low at 89.78.
• Sixth-time consecutive drop in the Australian Westpac Consumer Confidence has weakened aussie.
• Going forward, investors will focus on Japan's PPI numbers.

The AUD/JPY pair has slipped below the two-day low at 89.78 and is expected to extend losses further as negative market sentiment has dented the demand for risk-perceived assets. The asset has continued its five-day losing streak on Thursday and is likely to display a massive drop to near 86.00.

The asset has remained in the grip of bears after the rate hike decision from the Reserve Bank of Australia (RBA) failed to cheer the market participants. To tame the galloping inflation, the RBA elevated its interest rates by 35 basis points (bps) for the very first time since the emergence of the Covid-19. Rising price pressures forced RBA Governor Philip Lowe to dictate an unexpectedly hawkish tone in the last week’s monetary policy.

Also, the sixth time consecutive drop in the Australian Westpac Consumer Confidence has forced the market participants to dump the Australian dollar. The aussie economic data landed at -5.6% significantly lower than the former figure of -0.9%. A continuous drop in the confidence of the individuals has eventually impacted the antipodean.

Meanwhile, the Japanese yen is getting firmer on improving its safe-haven appeal. The market structure of value buying has supported yen. For further guidance, investors will keep an eye on the Japan Produce Price Index (PPI) numbers, which are due on Monday. A preliminary estimate for the monthly and yearly PPI is 0.3% and 9.7% respectively.