AUD/JPY surrenders 93.00 despite better-than-predicted Aussie Retail Sales data

• AUD/JPY has slipped sharply below 93.00 despite higher-than-predicted Aussie Retail Sales data.
• Aussie monthly Retail Sales have advanced to 0.6% vs. the prediction of 0.4%.
• Investors have not reacted negatively to the unscheduled bond-buying program by the BOJ.

The AUD/JPY pair has slipped below 93.00 despite higher-than-forecasted Aussie’s monthly Retail Sales data. The economic data has landed at 0.6%, higher than the estimates of 0.4%, but lower than the prior release of 1.3%.

There is no denying the fact that the price pressures in the Aussie region are accelerating like there is no tomorrow. Lastly, the Australian Consumer Price Index (CPI) was recorded at 6.1% for the second quarter of CY2022. Now, higher-than-expected monthly Retail Sales data will delight the RBA in hiking the rate further unhesitatingly as robust retail demand is critical for escalating interest rates.

To tame the galloping inflation the Reserve Bank of Australia (RBA) is continuously working on policy tightening. RBA Governor Philip Lowe has already escalated the Official Cash Rate (OCR) to 2.35%.

On the Tokyo front, investors have reacted less to the minutes released by the Bank of Japan (BOJ) in the early Asian session. Also, investors have not reacted negatively to the unscheduled bond-buying program by the Bank of Japan (BOJ). Going forward, investors will focus on Japan’s employment data. The Unemployment Rate is expected to decline to 2.5% from the prior release of 2.6%. Also, the Jobs/Applicants Ratio will improve to 1.30 vs. 1.29 reported earlier.