AUD/JPY drops to its lowest level since September, further below 94.00 mark

AUD/JPY turns lower for the third straight day and is pressured by a combination of factors.
BoJ rate hike bets and trade war fears continue to drive safe-haven flows towards the JPY.
Wednesday’s softer Australian CPI print undermines the AUD and contributes to the slide.

Haresh Menghani FXStreet

The AUD/JPY cross attracts fresh sellers following an Asian session uptick to the 94.20 area and turns lower for the third straight day on Thursday. This also marks the sixth day of a negative move in the previous seven and drags spot prices to the 93.70 area, or the lowest level since September 2024 in the last hour.

Investors seem convinced that the Bank of Japan (BoJ) will hike interest rates further amid broadening inflation in Japan. This overshadows BoJ Governor Kazuo Ueda's comments last week about potentially increasing regular bond buying and triggers a fresh leg up in JGB yields. Apart from this, concerns about US President Donald Trump's tariff plans further underpin the safe-haven JPY and exert downward pressure on the AUD/JPY cross.

In fact, Trump ordered an investigation on copper imports to assess whether tariffs should be imposed due to national security concerns. This comes on top of 10% tariffs imposed on goods from China and threats of new reciprocal tariffs for each country. Apart from this, Wednesday's softer domestic consumer inflation figures contribute to the Australian Dollar's (AUD) relative underperformance and further weigh on the AUD/JPY cross.

Meanwhile, the latest leg down validates this week's breakdown through the previous year-to-date low, around the 94.25 region. A subsequent fall and acceptance below the 94.00 mark suggests that the path of least resistance for the AUD/JPY cross remains to the downside. Traders now look forward to a slew of key economic reports from Japan on Friday, including Industrial Production, Retail Sales, and Tokyo inflation, for a fresh impetus.

Economic Indicator

Tokyo Consumer Price Index (YoY)

The Tokyo Consumer Price Index (CPI), released by the Statistics Bureau of Japan on a monthly basis, measures the price fluctuation of goods and services purchased by households in the Tokyo region. The index is widely considered as a leading indicator of Japan’s overall CPI as it is published weeks before the nationwide reading. The YoY reading compares prices in the reference month to the same month a year earlier. Generally, a high reading is seen as bullish for the Japanese Yen (JPY), while a low reading is seen as bearish.

AUD/USD falls to near 0.7100 after slipping below 50-day EMA

AUD/USD depreciates after registering minor gains in the previous day, trading around 0.7120 during the Asian hours. The technical analysis of the daily chart shows the pair consolidating sideways within a rectangle pattern, as neither bulls nor bears gain control. The AUD/USD pair is holding a slight bearish tone however as it sits beneath both the nine-day and 50-day EMAs.

160.00: USD/JPY back near intervention territory after upbeat US jobs report

US Nonfarm Payrolls beat expectations by a wide margin in May, with 172K jobs added. The US Dollar rebounds after the release, helping USD/JPY recover from its intraday lows. Warnings from Japanese authorities continue to limit upside potential near the 160.00 threshold.

Gold targets $4,300 amid stronger Dollar

Gold faces increasing selling interest and navigates the area of three-month lows near the $4,300 mark per troy ounce on Friday. The precious metal’s decline comes as traders assess the stronger-than-expected NFP, while the bid bias in the Greenback and higher US Treasury yields also collaborate with the retracement.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano (ADA) price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit.

Week ahead – Fed countdown begins amid US inflation data and geopolitical risks

Fed Chair Warsh’s first meeting approaches as key US inflation data could reshape expectations. Oil prices remain elevated as US-Iran talks continue; tariffs also return to the spotlight. ECB is expected to hike; will it be a one-off move or is July live?

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.