Despite the 5.9% decrease in Australian GDP, the AUD/JPY crosses 91.70

The AUD/JPY pair has surpassed the crucial barrier level of 91.70 despite a weaker-than-anticipated Australian Gross Domestic Product (GDP). The annual GDP results were 5.9% instead of the expected 6.3% and the previously reported 3.6%. While quarterly GDP data was reported at 0.6% rather than the 0.7% forecast and 0.9% that had previously been made public.

Weaker-than-anticipated Australian GDP numbers will help the Reserve Bank of Australia (RBA) achieve its goal of establishing price stability. After the RBA increased its Official Cash Rate (OCR) by 25 basis points for the third consecutive day on Tuesday, the cross remained extremely volatile (bps). Australia's interest rates are now 3.10 percent as a result of this. The 25 basis point hike in interest rates was decided upon in accordance with forecasts.

RBA Governor Philip Lowe thinks that further tightening of monetary policy is imminent in terms of interest rate guidance. The RBA is not in a rush to stop raising interest rates because the current inflation rate of 6.9% is significantly higher than the target rate of 2%, and additional policy tightening cannot be ruled out.

Investors will pay special attention this week when the Consumer Price Index (CPI) numbers for China are released on Friday. The annual CPI is predicted to drop significantly from the previous reading of 2.1% to 1.0%. The People's Bank of China (PBOC) might be forced to further ease monetary policy as a result of this. As China's largest trading partner, Australia will benefit from China's monetary easing by strengthening the Australian Dollar.

Investors in the Japanese yen are waiting for the GDP report on Thursday. Compared to the earlier contraction of 1.2%, it is predicted that the economic data will fall by 1.1%. Although the quarterly data is anticipated to decrease by 0.3%, similar to the previous release, it is more likely to decrease by 0.2%.