AUD/JPY juggles around 90.70 despite Westpac Consumer Confidence drops, China’s inflation elevates

• AUD/JPY has turned sideways as the FX domain is awaiting the US inflation.
• A broader risk-off impulse has underpinned yen against aussie.
• China’s CPI has increased to 2.1% while PPI is elevated to 8%.

The AUD/JPY pair is oscillating in a range of 90.33-90.80 despite the fact that the Australian Westpac Consumer Confidence has dropped sharply in the Asian session. The cross is trading lackluster from the previous trading session as the FX domain is awaiting the release of the US inflation.

It is worth noting that the Australian Westpac Consumer Confidence has dropped consecutively for the sixth time. The catalyst is landed at -5.6% significantly lower than the former figure of -0.9%. A continuous plunge in the confidence of the individuals may weigh some pressure on the aussie dollar. Meanwhile, the elevation in China’s Consumer Price Index (CPI) has also failed to impact the antipodean. China’s yearly inflation has landed at 2.1%, higher than the forecasts of 1.7%. Also, the Producer Price Index (PPI) remained higher at 8% against the estimates of 7.7%.

Meanwhile, a broader risk-off impulse in the market has underpinned the Japanese yen lately. Investors have started pouring funds into yen in the context of a value bet. Although the Bank of Japan (BOJ) will stick with its ultra-loose monetary policy as the Japanese economy has failed to reach the growth rate recorded in its pre-pandemic era. The falling yen will continue to attract funds due to higher exports and corporate may continue to report higher earnings.