- The Aud/JPY struggles for an intra -firm direction and oscillates in a narrow negotiation range.
- The decrease in the probabilities of a rise in BOJ rates in 2025 weakens the JPY and supports the crossing.
- Chinese encouraging GDP benefits the AUD and acts as a tail wind for cash prices.
The Aud/JPy low crossing during the Asian session on Tuesday, although it lacks follow -up and remains confined in the narrow negotiation range of the previous day. Cash prices are currently around the area of 96.60-96.65, with a fall of less than 0.10% in the day.
The Japanese Yen (JPY) continues with its lower relative performance amid the growing acceptance that the Bank of Japan (Boj) will resign to raise interest rates this year in advance of the economic repercussions of the highest US tariffs Participate in commercial negotiations, undermines the JPY as a safe refuge and acts as a tail wind for the Aud/JPY crossing.
After having issued tariff notices to more than 20 countries and announce a 50% tariff on copper imports last week, Trump softened his position on Monday and fueled the hopes that trade agreements could be reached before the deadline of August 1 for reciprocal tariffs. This helped relieve concerns about a global commercial war and increases the appetite of investors for riskier assets, which is evident in a generally positive tone in variable income markets and reduces the demand for safe refuge assets.
The Australian dollar (Aud), on the other hand, receives support from the GDP of China better than expected, which showed that the economy expanded at an annual rate of 5.2% in the second quarter of 2025. In addition, China’s industrial production increased by 6.8% in June compared to 5.6% estimated and the previous 5.8%, while annual retail sales increased 4.8% compared to 5.6% expected and 6.4% in May. In addition, China’s fixed asset investment advanced 2.8% so far this year (YTD) in June.
This turns out to be another factor that supports the Aud/JPY crossing, suggesting that any significant corrective setback could still be seen as a purchase opportunity and it is more likely to remain cushioned.
Economic indicator
Gross Domestic Product (Yoy)
The gross domestic product published by the Chinese National Statistics Office It is a measure of the total value of goods and services produced by China. GDP is considered a wide measure of economic activity and indicates the growth rate of the economy of a country. Since the Chinese economy influences the world economy, this indicator impacts the currency market. A high reading is positive or bullish for the CNY, while a minor reading is negative or bassist.
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Last publication:
Mar Jul 15, 2025 02:00
Frequency:
Quarterly
Current:
5.2%
Dear:
5.1%
Previous:
5.4%
Why is it important for operators?
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
