• AUD/JPY struggles to capitalize on the modest Asian session uptick to a fresh weekly top.
• The better-than-expected Chinese inflation figures fail to impress bulls or provide impetus.
• BoJ rate cut bets, geopolitical risks lend some support to the JPY and cap gains for the cross.

The AUD/JPY cross gains positive traction for the fourth successive day and climbs to a fresh weekly top during the Asian session on Friday. Spot prices currently trade around the 97.20-97.25 region and move little following the release of Chiese inflation figures.

The Australian Dollar (AUD) continues to draw support from the Reserve Bank Australia's (RBA) hawkish stance, showing the willingness to hike interest rates further to suppress still sticky inflation. Apart from this, a generally positive tone around the equity markets undermines the safe-haven Japanese Yen (JPY) and benefits the risk-sensitive Aussie. Bulls, meanwhile, seem rather unimpressed by the mostly better-than-expected Chinese inflation figures.

In fact, the National Bureau of Statistics reported this Friday that consumer prices in China rose by 0.5% in July from a year ago as compared to the 0.2% increase in June and expectations for a reading of 0.3%. Additional details revealed that the headline CPI climbed 0.5% in July, the highest since February. That said, the Producer Price Index shrank for a 22nd consecutive month and came in at -0.8% for July as compared to -0.9% estimated.