AUD/JPY falls below 97.50 as Australia's PMI data show slowing growth

• AUD/JPY depreciates after the release of the Purchasing Managers' Index figures on Tuesday.
• Australia's S&P Global Composite PMI dropped to 52.1 in September from 55.5 previously, its lowest level in three months.
• The BoJ sees a moderate economic recovery but flags weaknesses and global trade risks.

AUD/JPY continues to lose ground for the third successive session, trading around 97.30 during the Asian hours on Tuesday. The currency cross depreciates as the Australian Dollar (AUD) loses ground following the release of the preliminary Australia's S&P Global Purchasing Managers' Index (PMI) data.

Australia's S&P Global Composite PMI fell to 52.1 in September, from 55.5 prior, marking the lowest reading in three months. Manufacturing and services both noted slowing growth amid weaker new business inflows and lower goods orders at the fastest pace in eight months.

The preliminary S&P Global Services PMI showed a modest slowdown to 52 in September, from 55.8 in August. Meanwhile, the Manufacturing PMI fell to 51.6 from 53.0 previously.

The Reserve Bank of Australia (RBA) remains vigilant to shifts in the economic outlook, though recent data have largely met expectations. RBA Governor Michele Bullock told parliament on Monday that labor market conditions have eased slightly, with unemployment ticking higher. However, the market remains tight and near full employment.

The Bank of Japan (BoJ) decided to keep its interest rate at 0.5% unchanged for a fifth straight meeting last week, as widely expected. The Japanese central bank said the economy is recovering moderately but highlighted areas of weakness and risks from global trade policies.

Traders will likely watch Japan's Jibun Bank PMI data for September due on Wednesday. Attention will shift toward the BoJ Monetary Policy Meeting Minutes and Tokyo Consumer Price Index data, due later in the week, to gain further clues on the policy path.