AUD/JPY consolidates near 83.00 amid risk-off sentiment
- AUD/JPY remains muted in the Asian session.
- AUD limit gains amid risk-off mood and trade dispute with China.
- Yen suffers from a fragile economic outlook and BOJ measures.
AUD/JPY edges lower on Tuesday morning in the Asian session. After posting strong gains in the previous session, the pair seems to be consolidating gains near the higher levels.
At the time of writing, AUD/JPY trades at 83.04, down 0.10% for the day.
Investors continued to digest the US Fed’s higher inflation and interest rate forecast, which came as a surprise to the market in the central bank’s latest monetary policy meeting.
On the economic side, the Retail Sales rose 0.1% in May, much below the market expectations at 0.5%. However, the readings pointed out a slower growth rate in the previous three months.
Meanwhile, the escalating tensions between Australia and China prove to be a negative factor for the aussie. As reported, Canberra has dragged Beijing to WTO, after latter slap tariffs on Australind wine imports.
Rebound in commodity prices helped limit the downside for the pair. The higher commodity prices help commodity-linked AUD to gain against the majors.
It is worth noting that S&P 500 Futures were trading at 4,217, up 0.09% for the day.
On the other hand, the yen remained grounded by the mixed Fed's official voices over taper talks. However, on the domestic front, a slower vaccination rollout program and lockdown restriction kept the currency pressurized.
The market dynamics continue to influence the pair’s performance in the absence of any major fundamental news.
AUD/JPY additional levels