AUD/JPY inches toward 0.8600 post Australia upbeat CPI

• AUD/JPY posts gains for the third straight day on Wednesday.
• The Aussie jumps against majors post upbeat CPI data.
• The Japanese yen remains on the backfoot on dovish BOJ, risk-on mood.

AUD/JPY continues to gain on Wednesday in the early Asian session. The cross-currency pair has been rising since the beginning of the October series. As of writing, the AUD/JPY is trading at 85.93 up 0.36% for the day.

Investors cheered up Australia's upbeat inflation data. The Consumer Price Index (CPI) came at 0.8% in line with market expectations on a quarterly basis. The Reserve Bank of Australia (RBA) Trimmed Mean CPI reported at 0.7% QoQ basis, beating the market consensus of 0.5%. The aussie gains on the expectations that the higher inflation readings will prompt the RBA to raise the cash rate before 2024. 

In addition to that, the reopening of Australian borders supports the sentiment surrounding the aussie. As per the latest update fully vaccinated Australian citizens and permanent residents will no longer require an exemption from outbound travel from Australia from November 1.

On the other hand, the Japanese yen lost its momentum amid an improved risk appetite among investors. It is worth noting that S&P 500 Futures is trading at 4,569, up 0.07% for the day. Further, the market is bracing for the Bank of Japan (BOJ) dovish monetary policy announcement on Thursday. The BoJ is expected to maintain its massive stimulus program while signaling more delays in the economic recovery.

As for now, the market dynamcis continue to influecne the pair's performance.

AUD/JPY additional levels