Japan’s consumer price inflation rose to 2.1% in September, above the Bank of Japan’s 2% target, as AUD/JPY traded near 110 ahead of the central bank’s Oct. 29-30 meeting.
FXStreet reported the pair lower near 110.10 in early European trading at 12:32 a.m. ET (04:32 UTC) Friday, Oct. 23. The outlet’s chart put the 100-day simple moving average at 112.05 and marked resistance at 111.00-111.10, with support at 109.20. FXStreet disclosed that AI assisted its technical analysis.
The Statistics Bureau of Japan said the nationwide consumer price index (CPI) rose 2.1% from a year earlier, compared with 1.9% in August. CPI excluding fresh food also increased 2.1%, up from 1.7%. The measure excluding both fresh food and energy rose 2.4%, compared with 1.9% the prior month.
Reuters attributed price pressures to higher fuel costs linked to the prolonged Middle East conflict, yen weakness that raised import prices and strong AI demand. The outlet reported that these pressures blunted the effect of government fuel subsidies.
The Bank of Japan raised its overnight call-rate guideline to around 1.25% in September, effective Sept. 24, from around 1.00% in July. Its next policy meeting is scheduled for Thursday and Friday, Oct. 29-30.
Forecasts for the next increase differ. Reuters reported that many economists it polled expected the rate to reach 1.50% in December. Standard Chartered analysts quoted by FXStreet expected no change in October and named January 2027 as their base case for the next hike; neither forecast is official central-bank guidance.
The Bank of Japan’s calendar lists the policy statement and the “Bank’s View” portion of its October Outlook for Oct. 30. The full outlook text is scheduled for Nov. 2.
