- AUD/JPY trades cautiously in the Asian session.
- AUD remains grounded on upbeat economic data.
- Yen gains on its safe-haven appeal.
The AUD/JPY currency pair seesaws in the Asian trading session on Wednesday. The cross confides in a very narrow trading band.
At the time of writing, AUD/JPY trades at 84.61, up 0.01% for the day.
The upbeat economic data continued to position the AUD relatively in a better position. As the global economic outlook improves, investors rush towards a riskier asset.
The Reserve Bank of Australia (RBA) Meeting Minutes suggest that the central bank is committed to boosting the economy by keeping the finance costs very low. The policymakers reaffirmed their decision not to alter its monetary policy until a sustainable inflation target is achieved within the 2% to 3% of its target range.
On the economic side, the House Price Index rose 5.4% QoQ in March, just a tad below the market expectations at 5.5%. This is the steepest increase in housing prices since the fourth quarter of 2009. The rising housing prices pose a threat to price stability and inflation fears, which kept the gains limited for AUD.
In addition to that, the rising political tension between Australia and China also negatively impacted the performance of the Aussie dollar.
On the other hand, the Japanese yen found some ground as market volatility is high ahead of the Fed rate decision. Investors seek safer bets in times of uncertainty.
Meanwhile, Japan’s trade deficit narrowed to Ұ187.1b in May from Ұ856.7b. The exports grew 49.6% as compared to imports which rose at a softer 27.9%. The yen gains little traction as a reaction to the data.
AUD/JPY additional levels
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.