AUD/JPY trades firmly around 94.00, US-China trade talks remain key

AUD/JPY clings to gains near 94.00, while investors await trade discussions between the US and China.
Market experts believe that the RBA will cut interest rates again in the July policy meeting.
An upward revision in Japan’s Q1 GDP data has supported the Japanese yen.

Sagar Dua FXStreet

The AUD/JPY pair holds onto a two-day strong upside move around 94.00 at the start of the week. The cross exhibits strength ahead of the trade negotiations between delegates from the United States (US) and China in London later in the day.

Investors will pay close attention to the US-China trade talks as they will influence the next move in the Australian Dollar (AUD), given Australia’s strong reliance on its exports to Beijing.

“I am pleased to announce that Secretary of the Treasury Bessent, Secretary of Commerce Lutnick, and United States Trade Representative, Ambassador Greer, will be meeting in London on Monday, June 9, 2025, with Representatives of China, with reference to the Trade Deal. The meeting should go very well,” US President Donald Trump wrote in a post on Truth.Social over the weekend.

Last week, US President Trump expressed confidence that trade discussions with China would go well after a phone call with Chinese leader XI Jinping.

On the data front, upbeat China Trade Balance data for May, which was released earlier in the day, also supported the Australian Dollar. China's Trade Balance (CNY) came in at CNY743.56 billion in May, higher than the previous surplus of CNY689.99 billion.

On the domestic front, the Australian economic calendar has little to offer this week. Therefore, the major trigger will be global announcements and market expectations for the Reserve Bank of Australia’s (RBA) monetary policy outlook. EQ Economics managing director Warren Hogan has stated that the RBA should reduce its Official Cash Rate (OCR) by 35 basis points (bps) to 3.5% in its next monetary policy meeting, which is in July.

Meanwhile, the Japanese Yen (JPY) trades higher against its major peers at the start of the week. The Asian currency gains after revised Q1 Gross Domestic Product (GDP) data showed that the economy remained flat. Preliminary Q1 GDP data showed that the economy declined steadily by 0.2%.

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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.