The AUD/JPY pair experienced a marginal increase as the Japanese Yen weakened in response to Japan’s March export data, which fell below expectations. Exports increased by 3.9% year-over-year, compared to a forecast of 4.5% and a prior increase of 11.4%. The Australian Dollar continues to face downward pressure following mixed domestic employment figures released on Thursday. The AUD/JPY pair rebounded from losses incurred in the previous session, trading near 90.70 during the European trading hours. This recovery is primarily attributed to JPY depreciation stemming from the aforementioned export data, which revealed a growth of JPY 9,847.8 billion, below the anticipated figure. Despite this, a resurgence in imports indicates sustained domestic demand. Economy Minister Ryosei Akazawa clarified that foreign exchange matters are excluded from ongoing trade discussions in Washington, where Japan is advocating for the complete removal of Trump-era tariffs. While Japan aims for a swift and mutually advantageous agreement, the United States appears inclined to finalize negotiations within the established 90-day timeframe. Despite JPY weakness, the AUD/JPY pair’s upward movement may be constrained by headwinds affecting the Australian Dollar. Australia’s recent employment report indicated an Unemployment Rate increase to 4.1% in March, slightly below the projected 4.2%, while Employment Change registered at 32.2K, falling short of the anticipated 40K.
