The AUD/JPY cross remains under selling pressure and trades in negative territory for the second consecutive day during the early Asian session on Friday. At the time of publication, the cross is at 94.71, up 0.03% on the day.

The preliminary S&P Global Australian Services PMI posted 50.5 in September, up from 47.8 in August, according to data released on Friday. The Manufacturing PMI fell to 48.2 from 49.6 in the previous reading. Additionally, the Composite Index rose from 48.0 to 50. The mixed Australian economic data fail to bolster the Australian dollar as investors turn cautious ahead of the Bank of Japan's (BoJ) highly anticipated interest rate decision.

On the subject of the Japanese yen, it is widely anticipated that the Bank of Japan will maintain its short-term interest rate objective of -0.1% and its 10-year bond yield target of approximately 0%. Previously, the Japanese central bank stated that monetary policy changes would not be considered until local wage and inflation data met its projections. The markets are anticipating Governor Kazuo Ueda's post-meeting press conference for any new hints regarding the timing of a policy shift and other adjustments to the Yield Curve Control (YCC).

Regarding the data, Japan's National Consumer Price Index (CPI) for August rose to 3.2% year-over-year (YoY) from 3.2% in July. In addition, the National CPI excluding fresh food rose from 3.0% in July to 3.1% in August, while the National CPI excluding food and energy rose from 4.3% to 4.3%.

Market participants will keenly monitor the Bank of Japan's (BoJ) interest rate decision, which is scheduled for Friday evening. This event could provoke market volatility and provide direction for the AUD/JPY cross.

Trade

Market

Market Analysis

Trading Tutorial