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This morning, Japan released its Q2 GDP flash estimates which showed the economy had shrunk the most since 2011, at -6.8% year-on-year and -1.7% month-on-month.
The decline was largely expected due to April’s sales tax hike, but overall the figures were a touch better than market forecasts.
On the news, AUD/JPY edged up higher and the pair was further supported by some positive data from Westpac consumer sentiment and wage price index.
Consumer confidence improved for a third straight month with a reading at 98.5, while wage price growth was largely in line with analysts’ forecasts.