- The AUD/JPY maintains positive land around 93.10 in the early hours of the European session on Wednesday.
- The negative perspective of the cross prevails below the 100 -day EMA, but a consolidation cannot be ruled out with a neutral RSI indicator.
- The initial support level is 91.68; The immediate resistance level to monitor is 93.90.
The Aud/JPY crossing in positive territory about 93.10 during the early European session on Wednesday. The Australian dollar (AUD) is still weak against the Japanese Yen (JPY) after the economic growth of Australia’s first trimester (Q1) did not comply with the estimates.
The data published by the Australian Statistics Office (ABS) on Wednesday showed that the Gross Domestic Product (GDP) of the country grew by 0.2% intertrmetral in the Q1 of 2025 compared to the previous 0.6%. This reading was weaker than the expectations of 0.4%. In annual terms, GDP expanded 1.3%, compared to 1.3%growth in Q4, while it was below the consensus of an increase of 1.5%.
Technically, the Bassist Perspective of the AUD/JPY is still in force since the crossing remains limited below the exponential (EMA) average of 100 days in the daily chart. However, greater consolidation or temporary recovery cannot be ruled out, with the 14 -day relative force index (RSI) around the midline.
The lower limit of the Bollinger band in 91.68 acts as an initial support level for the crossing. A decisive breakdown below the aforementioned level could expose 90.70, the minimum of April 30. Further south, the crucial containment level is observed in the psychological figure of 90.00.
On the positive side, the first bullish barrier for the AUD/JPY to monitor is 93.90, the 100 -day Ema. A sustained trade above this level could pave the way to 94.78, the upper limit of the Bollinger band. Extended earnings could see the following obstacle on 95.65, the maximum of May 13.
AUD/JPY DAILY GRAPH
Faqs Australian dollar
One of the most important factors for the Australian dollar (Aud) is the level of interest rates set by the Australian Reserve Bank (RBA). Since Australia is a country rich in resources, another key factor is the price of its greatest export, iron mineral. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and commercial balance. The feeling of the market, that is, if investors are committed to more risky assets (Risk-on) or seek safe shelters (Risk-Off), it is also a factor, being the positive risk-on for the AUD.
The Australian Reserve Bank (RBA) influences the Australian dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of the interest rates of the economy as a whole. The main objective of the RBA is to maintain a stable inflation rate of 2% -3% by adjusting the interest rates or the low. Relatively high interest rates compared to other large central banks support the AU, and the opposite for the relatively low. The RBA can also use relaxation and quantitative hardening to influence credit conditions, being the first refusal for the AU and the second positive for the AUD.
China is Australia’s largest commercial partner, so the health of the Chinese economy greatly influences the value of the Australian dollar (Aud). When the Chinese economy goes well, it buys more raw materials, goods and services in Australia, which increases the demand of the AU and makes its value upload. The opposite occurs when the Chinese economy does not grow as fast as expected. Therefore, positive or negative surprises in Chinese growth data usually have a direct impact on the Australian dollar.
Iron mineral is the largest export in Australia, with 118,000 million dollars a year according to data from 2021, China being its main destination. The price of iron ore, therefore, can be a driver of the Australian dollar. Usually, if the price of iron ore rises, the Aud also does, since the aggregate demand of the currency increases. The opposite occurs when the price of low iron ore. The highest prices of the iron mineral also tend to lead to a greater probability of a positive commercial balance for Australia, which is also positive for the AUD.
The commercial balance, which is the difference between what a country earns with its exports and what it pays for its imports, is another factor that can influence the value of the Australian dollar. If Australia produces highly requested exports, its currency will gain value exclusively for the excess demand created by foreign buyers who wish to acquire their exports to what you spend on buying imports. Therefore, a positive net trade balance strengthens the AUD, with the opposite effect if the commercial balance is negative.
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.
