|

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.

USDEURGBPJPYCADAUDNZDCHF
USD0.10%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%
CAD0.00%0.10%0.15%0.29%-0.15%0.17%0.11%
AUD0.16%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

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

More from Haresh Menghani
Share:

Editor's Picks

AUD/USD remains offered below 0.7000

AUD/USD extends its decline for a second consecutive session, retreating toward the 0.6960 region, or multi-day lows, ahead of the opening bell in Asia. The pair’s decline comes as investors keep digesting the RBA’s latest monetary policy decision and gear up for US Midterm election results.

USD/JPY fails near 159.00 amid weak USD, intervention risks

USD/JPY edges lower during Tuesday’s Asian session, reversing part of the previous day's gains to 158.00 as the US Dollar remains depressed amid hopes for Iran diplomacy and ahead of US midterm elections. Meanwhile, intervention risks support the Japanese Yen, though the uncertainty over the timing of the next BoJ rate hike caps gains. This keeps the pair confined within a familiar range and warrants caution before placing directional bets.


Gold struggles near $3,900 as traders assess Middle East developments,US election risks

Gold (XAU/USD) loses momentum on Tuesday as Oil prices rebound after the Wall Street Journal (WSJ) reported a US strike on Iran’s Qeshm Island. At the time of writing, XAU/USD trades around $3,909, down 0.93% on the day.

BNB Price Forecast: BNB rebounds above $700 as Binance records net inflows after hack
BNB (BNB) springs up above $700 on Tuesday, as bulls push to regain momentum following last week’s sell-off. The decline from highs above $760 on Thursday to lows of $680 was largely driven by investor reaction to the security breach on Binance, the largest crypto exchange. The hack impacted approximately $6.3 billion, the largest in crypto industry history.
US Dollar Index edges up within range with midterm elections front and centre

The US Dollar Index is picking up from session lows but remains within previous ranges, below 102.00. The Greenback is drawing support from hostilities in Iran and higher Oil prices, but US political uncertainty is capping gains.

The 2% inflation target came from a throwaway remark. It now moves trillions
The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.