|

AUD/JPY attracts some buyers above 102.00 as China's Trade Balance grows more than expected

  • AUD/JPY jumps to around 102.05 in Thursday’s Asian session, up 0.49% on the day. 
  • Risk-on sentiment, the BoJ rate-hike uncertainty weigh on the Japanese Yen.
  • The encouraging Chinese economic data support the China-proxy Australian Dollar. 

The AUD/JPY cross extends its upside to near 102.05 on Thursday during the Asian trading hours. The risk-on mood and the uncertainty surrounding the Bank of Japan's (BoJ) rate hike exert some selling pressure on the Japanese Yen (JPY). 

The victory of Republican Donald Trump in the US presidential election drags the JPY lower. Additionally, the minutes released by the BoJ on Wednesday showed that the Japanese central bank would not raise its policy interest rate under financial and capital market instability. 

"In the current phase, the BoJ should patiently maintain the current accommodative financial conditions to support economic activity," another Policy Board member said. The BoJ rate-hike uncertainty is likely to undermine the JPY in the near term. 

Nonetheless, the downside for the JPY might be capped after the verbal intervention from the Japanese authorities. Japan's top currency diplomat Atsushi Mimura said on Thursday that authorities were ready to act against "excessive" currency moves.

On the other hand, China’s Trade Balance grew more than expected in October as Exports rose, boosting the China-proxy Australian Dollar (AUD). The Trade Balance grew to $95.27 billion in October versus $81.71 billion prior, higher than expectations of $75.1 billion. Meanwhile, Exports climbed by 12.7% YoY in October, compared to 2.4% in the previous reading. The figure was above the market consensus of 5.0%. 

Author

Lallalit Srijandorn

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

More from Lallalit Srijandorn
Share:

Editor's Picks

AUD/USD hangs near three-week low, below 0.6950 as traders await US NFP report

AUD/USD hits a three-week low during the Asian session on Friday as the RBA’s dovish shift and a rout in equity markets weigh on the risk-sensitive Aussie. However, the recent slump in US bond yields to a two-month low keeps US Dollar bulls on the back foot and limits losses for the currency pair as traders look to the US NFP report for a fresh impetus.

USD/JPY bounces off three-week low; keeps the red near 157.65 as focus remains on US NFP

USD/JPY bounces off the weekly low set during the Asian session, as bears turn cautious ahead of the US NFP report due later this Friday. The upside seems limited as the recent slump in US bond yields and hopes of Iran war de-escalation undermine the US Dollar. Moreover, a hawkish BoJ and intervention risks support the Japanese Yen, capping the pair.

Gold loses the grip; $4,000 comes next on the downside

Gold sets aside two daily advances in a row on Friday, opening the door to a potential test of the key $4,000 mark per troy ounce. The precious metal’s retracement follows a decent improvement in the sentiment surrounding the US Dollar, solid NFP data and higher US Treasury yields across the board.

Democrats win House and Senate in US midterms: Why isn’t all bad news for crypto

The biggest story this week was Tuesday’s US midterm elections, which saw Democrats win control of both the House and the Senate in a clear blue wave. This political shift in the US has triggered sharp price swings across the cryptocurrency market.

Week ahead – Inflation and geopolitics in focus as US political landscape shifts

Post-midterm election euphoria fizzles out as risk aversion prevails. US CPI, PPI and Fedspeak on the radar as Fed hike bets remain supported. Oil retreat pauses on mixed hopes about the ongoing conflicts.

US Dollar breaks below 101.50 as Democrats sweep Congress
The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.