- AUD/JPY depreciates as the Japanese Yen gains ground following stronger Japanese Q2 Gross Domestic Product data.
- Japan’s Q2 Gross Domestic Product increased by 0.3% QoQ, up from 0.1% in Q1.
- China’s Retail Sales climbed 3.7% YoY in July, falling short of the 4.6% expected and 4.8% in June.
AUD/JPY extends its losses for the second successive session, trading around 95.60 during the Asian hours on Friday. The currency cross depreciates as the Japanese Yen (JPY) advances following stronger-than-expected Japanese Gross Domestic Product (GDP) data for the second quarter.
Japanese Gross Domestic Product increased by 0.3% quarter-over-quarter in the second quarter, following a 0.1% rise in Q1, as expected. GDP Annualized expanded by 1.0% in Q2, compared to a contraction of 0.2% in the first quarter and consensus estimates for a 0.4% rise. The economic growth was supported by net exports, which added 0.3% despite headwinds from US tariffs.
Japan's Economy Minister Ryosei Akazawa noted that the data indicated the economy is recovering modestly. Akazawa, however, highlighted that risks from US trade policies could weigh on growth, while rising prices could dampen consumer sentiment and hurt private consumption.
The downside of the AUD/JPY cross could be limited as the Australian Dollar (AUD) gains ground against its peers. However, the AUD faced a slight challenge following the release of disappointing key economic data from China, Australia’s major trading partner.
China’s Retail Sales rose 3.7% year-over-year in July, falling short of 4.6% expected and 4.8% in June. Meanwhile, Industrial Production increased 5.7% YoY, compared to the 5.9% forecast and 6.8% seen previously.
Economic Indicator
Gross Domestic Product (QoQ)
The Gross Domestic Product (GDP), released by Japan’s Cabinet Office on a quarterly basis, is a measure of the total value of all goods and services produced in Japan during a given period. The GDP is considered as the main measure of Japan’s economic activity. The QoQ reading compares economic activity in the reference quarter to the previous quarter. Generally, a high reading is seen as bullish for the Japanese Yen (JPY), while a low reading is seen as bearish.
Read more.Last release: Thu Aug 14, 2025 23:50 (Prel)
Frequency: Quarterly
Actual: 0.3%
Consensus: 0.1%
Previous: 0%
Source: Japanese Cabinet Office
Economic Indicator
Retail Sales (YoY)
The Retail Sales data, released by the National Bureau of Statistics of China on a monthly basis, measures the value of goods sold by retailers in China. Changes in Retail Sales are widely followed as an indicator of consumer spending. Percent changes reflect the rate of changes in such sales, with the YoY reading comparing sales values in the reference month with the same month a year earlier. Generally, a high reading is seen as bullish for the Renminbi (CNY), while a low reading is seen as bearish.
Read more.Last release: Fri Aug 15, 2025 02:00
Frequency: Monthly
Actual: 3.7%
Consensus: 4.6%
Previous: 4.8%
Source: National Bureau of Statistics of China
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