AUD/JPY climbs above mid-108.00s amid softer GDP-inspired JPY weakness
- AUD/JPY kicks off the new week on a positive note and draws support from a combination of factors.
- Japan’s softer Q4 GDP tempers BoJ rate hike bets and undermines the JPY amid a positive risk tone.
- The RBA’s hawkish stance continues to act as a tailwind for the Aussie and further acts as a tailwind.
The AUD/JPY cross regains some positive traction at the start of a new week following the disappointing release of Japan's Q4 GDP report, which tempers Bank of Japan (BoJ) rate hike bets and undermines the Japanese Yen (JPY). Spot prices climb back above mid-108.00s during the Asian session and, for now, seem to have snapped a four-day losing streak to a nearly two-week low, touched on Friday.
Japan’s Cabinet Office reported earlier today that the economy expanded 0.1% in the fourth quarter of 2025, compared to a 0.7% contraction recorded in the previous quarter. The reading, however, was below market expectations and tempered bets for an immediate policy tightening by the Bank of Japan (BoJ). Apart from this, the underlying bullish sentiment undermines the safe-haven JPY and assists the AUD/JPY cross to attract buyers on Monday.
The Australian Dollar (AUD), on the other hand, sticks to its bullish bias on the back of the Reserve Bank of Australia's (RBA) hawkish tilt. In fact, the RBA Governor Michele Bullock said last Thursday that the central bank will raise interest rates again if inflation becomes entrenched. Moreover, RBA Assistant Governor Sarah Hunter said that inflation is expected to remain above the 2%-3% annual target for some time and that the labour market has stabilised.
Furthermore, hopes for more fiscal and monetary stimulus from China offer some support to antipodean currencies, including the Aussie, and turn out to be another factor acting as a tailwind for the AUD/JPY cross. However, speculations that Japanese authorities might intervene to stem further JPY weakness, along with bets for an imminent BoJ rate hike later this year, might hold back bulls from positioning for a further appreciating move for the currency pair.
Japanese Yen Price Today
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the British Pound.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.10% | 0.14% | 0.26% | -0.00% | -0.16% | 0.16% | 0.11% | |
| EUR | -0.10% | 0.03% | 0.18% | -0.10% | -0.26% | 0.07% | 0.01% | |
| GBP | -0.14% | -0.03% | 0.13% | -0.15% | -0.30% | 0.02% | -0.02% | |
| JPY | -0.26% | -0.18% | -0.13% | -0.29% | -0.44% | -0.13% | -0.17% | |
| CAD | 0.00% | 0.10% | 0.15% | 0.29% | -0.15% | 0.17% | 0.11% | |
| AUD | 0.16% | 0.26% | 0.30% | 0.44% | 0.15% | 0.32% | 0.27% | |
| NZD | -0.16% | -0.07% | -0.02% | 0.13% | -0.17% | -0.32% | -0.04% | |
| CHF | -0.11% | -0.01% | 0.02% | 0.17% | -0.11% | -0.27% | 0.04% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
