Moves have been modest but clearly visible in Asian trade, with the yen the session's underperformer after Japan August inflation data undershot forecasts across the board, and the Australian dollar the stronger performer following Governor Bullock's comments to a parliamentary committee. USD/JPY has ticked higher as traders price a chance the Bank of Japan sounds less hawkish in its outlook today even if it delivers the widely expected rate hike, while AUD/USD has firmed on the view that Bullock's remark that upside inflation risks flagged in August are now materialising all but confirms another RBA hike at the September 28-29 meeting. Neither move has been dramatic, but the divergence gives a clean read on how each central bank's near-term messaging is being priced heading into their respective decisions.--- The yen and Aussie are moving in opposite directions this morning: soft Japanese inflation data has traders doubting a hawkish BoJ outlook, while Bullock's inflation comments have markets treating a September RBA hike as close to confirmed.Summary:Japan's August national CPI data undershot forecasts across every measure: headline at 1.9% versus 2.0% expected (flat versus July), core at 1.7% versus 1.8% expected (down from July's 1.8%), and core-core at 1.7% versus 2.0% expected (down from July's 1.8%)The yen has weakened modestly as the softer inflation print raises doubts the Bank of Japan will sound as hawkish in its outlook today as markets had expected, even with a rate hike still widely pricedRBA Governor Michele Bullock told a parliamentary committee that upside inflation risks flagged in the RBA's August Statement on Monetary Policy are now materialising, driven by Middle East oil prices, the AI boom and extreme weatherThe Australian dollar has firmed on the view that Bullock's comment strongly hints at a further RBA rate hike at the September 28-29 meetingBoth currency moves have been modest rather than dramatic, but clearly visible in early Asian trade It has been an active early session in Asia, with the yen the weaker performer and the Australian dollar the stronger one, though neither move has been dramatic. Japan's national consumer price data for August, released a few minutes into the session, undershot forecasts across every measure the market watches. Headline CPI came in at 1.9% year on year against expectations of 2.0%, unchanged from July. The core reading, which excludes fresh food, printed at 1.7%, below the 1.8% forecast and down from July's 1.8%. The core-core measure, which strips out both fresh food and energy and is the gauge the Bank of Japan watches most closely for underlying price trends, came in at 1.7%, well short of the 2.0% expected and down from 1.8% in July.The Bank of Japan is still widely expected to raise its policy rate later today, but the softer inflation print is being read as a sign the central bank may strike a less hawkish tone in its outlook than markets had been positioned for. That has been enough to weaken the yen modestly through the session, even as the hike itself remains close to fully priced.The Australian dollar has moved the other way, supported by comments from Reserve Bank of Australia Governor Michele Bullock in testimony to the House of Representatives Standing Committee on Economics. Bullock told the committee that upside inflation risks flagged in the RBA's August Statement on Monetary Policy are now materialising, pointing to the Middle East conflict, the AI boom and extreme weather events as sources of upward pressure on energy, agricultural and technology-related prices. That comment is being taken as a strong signal that the RBA will raise its cash rate at the Board's September 28-29 meeting, adding support to the Australian dollar through the session.Taken together, the two moves offer a clean, if modest, illustration of how central bank messaging is shaping near-term positioning in Asia today. Traders are treating Japan's data as marginally dovish for the BoJ's outlook even with a hike still expected, while treating Bullock's remarks as marginally hawkish for the RBA even ahead of any formal decision. Both currency pairs remain easily within recent ranges, but the direction of each move lines up cleanly with the respective central bank narrative. This article was written by Eamonn Sheridan at investinglive.com.