Ella 
AUD/JPY rose for the second day in a row. The cross attracted some bulls following the release of the RBA minutes and data from Australia and Japan. The exchange rate is currently trading around 96.65, up 0.26% on the day.
The minutes of the RBA’s August meeting showed that it will maintain the current monetary policy stance. Policymakers, however, agreed that further rate hikes may be needed. On Tuesday, data from the Australian Bureau of Statistics showed that the wage price index rose 0.8% quarter-on-quarter in the second quarter, compared with 0.9% expected and 0.8% previously. The annual rate was 3.6%, and the market expected 3.7%.
For Chinese data, the People’s Bank of China (PBOC) on Tuesday cut the one-year medium-term lending facility (MLF) rate to 2.50% from 2.65%. A surprise rate cut by the People’s Bank of China fueled concerns over a deteriorating economic outlook in China, which could limit the Aussie’s upside. Meanwhile, China’s July retail sales fell 2.5% yoy vs 4.8% expected vs 3.1% prior; industrial production fell 3.7% yoy vs 4.5% expected vs 4.1% prior.
In terms of the yen, the initial value of Japan’s GDP in the second quarter of this year increased by 1.5% month-on-month, the market expected 0.8%, and the previous value was 0.7%. After the stronger-than-expected data, Japanese Economy Minister Shigeyuki Goto said he expected a steady economic recovery, before citing the need to focus on the threat of a global downturn and upward pressure on prices. Goto has shown a willingness to be flexible with the economy and prices as needed.
Market participants will turn their focus to Australian employment data due on Thursday. In addition, Japanese trade data and national CPI annualized rate for July are also due later in the week.
