AUD/JPY slips to 9-day low on disappointing Aussie data

• Weak Aussie data drives AUD/JPY to nine-day lows. 
• Renewed coronavirus concerns weigh over risk sentiment and the AUD.

The offered tone around the Aussie dollar strengthened on Wednesday, pushing the AUD/JPY to nine-day lows after data released in Australia showed the wage-price inflation slowed in the third quarter. 

Australia's Wage Price Index rose 0.1% quarter-on-quarter in the third quarter, missing the forecast for a steady 0.2% growth. The metric rose 1.4% in annualized terms, marking a slowdown from the preceding quarter's 1.8% rise and narrowly missing the forecast for 1.5%. 

The weaker-than-expected release validated the Reserve Bank of Australia's (RBA) dovish stance and drew offers for the AUD. The AUD/JPY pair fell from 76 to 75.69, the lowest level since Nov. 9, following the Wage Price Index data, extending Tuesday's drop from 76.50. 

Additional bearish pressure likely stemmed from the risk-off tone in the financial markets. Following the overnight losses on Wall Street, the sentiment soured in Asia, with investors reconsidering the near-term negative impact of the resurgence of coronavirus on the global economy.

Technical levels