Created
: 2025.06.12
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
AUD/JPY declines to near 93.50 amid geopolitical risks
World FX news
Breaking news
AUD/JPY declines to near 93.50 amid geopolitical risks
2025.06.12 14:00
2025.06.12 14:00
- AUD/JPY softens to near 93.55 in Thursday's early European session.
- Geopolitical risks boost the Japanese Yen, a safe-haven currency.
- China granted a six-month limit on its ease of rare-earth export licenses.
The AUD/JPY cross trades in negative territory for the second consecutive day around 93.55 during the early European trading hours on Thursday. Rising geopolitical tensions in the Middle East boost the safe-haven flows, supporting the Japanese Yen (JPY). Japan's April Industrial Production will be published on Friday.
On Wednesday, the United States is planning a partial evacuation of its Iraqi embassy and will allow military dependents to depart places around the Middle East, citing security risks in the region. Additionally, White House envoy Steve Witkoff is scheduled to meet Iranian Foreign Minister Abbas Araghchi in Muscat on Sunday and discuss the Iranian response to the recent US proposal, per Axios. Any signs of escalating geopolitical risks could underpin the JPY as investors seek more holdings in safe-haven assets.
On the Aussie front, optimism around the US-China trade deal could help limit the downside for the cross. Early Wednesday, the US and China agreed to a preliminary deal on how to implement the consensus the two sides reached in Geneva.
On the same day, the Wall Street Journal reported that China is putting a six-month limit on rare-earth export licenses for US automakers and manufacturers. Positive developments surrounding the world's two largest economies might underpin the China-proxy AUD as China is a major trading partner of Australia.
Australian Dollar FAQs
One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment - whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) - is also a factor, with risk-on positive for AUD.
The Reserve Bank of Australia (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 interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive.
China is Australia's largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs.
Iron Ore is Australia's largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD.
The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.
Last updated
: 2025.06.12
Related articles
GBP/JPY hits new YTD high above 199.00 as US tariff threat weakens Yen
55 minutes agoPresident Trump could send letter to EU in two days
55 minutes agoEUR/JPY strengthens as Trump's tariff warning weighs on Yen
2025.07.09 01:11GBP/USD edges lower as UK fiscal concerns, Fed rates dampen demand for Sterling
2025.07.09 00:11NY Fed: Year-ahead expected inflation falls to 3% in June from 3.2% in May
2025.07.09 00:10EUR/GBP climbs as Trump's tariff threats stir markets
2025.07.08 23:58
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
Dow Jones Industrial Average grapples with recursive trade talk
The Dow Jones Industrial Average (DJIA) struggled to maintain its balance on Tuesday, churning chart paper near 44,350 as the Trump administration angles to keep the pressure on trade talks.
New
2025.07.09 02:33GBP/JPY hits new YTD high above 199.00 as US tariff threat weakens Yen
The British Pound (GBP) reached a new YTD high against the Japanese Yen (JPY) on Tuesday as United States (US) tariff threats on Japan weighed on the JPY.
New
2025.07.09 01:49President Trump could send letter to EU in two days
President Donald Trump announced on Tuesday that the BRICS group's countries would soon be subject to a 10% tariff rate.
New
2025.07.09 01:49EUR/JPY strengthens as Trump's tariff warning weighs on Yen
The Euro (EUR) extends its advance against the Japanese Yen (JPY) for the second straight session on Tuesday, as the Yen weakens broadly across major currencies.
New
2025.07.09 01:11GBP/USD edges lower as UK fiscal concerns, Fed rates dampen demand for Sterling
The British Pound (GBP) is weakening against the US Dollar (USD) on Tuesday as markets look to news on trade developments, which is influencing the broader economic outlook.
New
2025.07.09 00:11NY Fed: Year-ahead expected inflation falls to 3% in June from 3.2% in May
The Federal Reserve (Fed) Bank of New York noted in its latest Survey of Consumer Expectations that the year-ahead inflation expectation stood at 3% in June, down from 3.2% in May.
New
2025.07.09 00:10EUR/GBP climbs as Trump's tariff threats stir markets
The Euro recovers some ground against the Pound Sterling, rising by over 0.22% against it, as the US Dollar pressures both currencies.
New
2025.07.08 23:58Canadian Dollar weakens as trade tensions flare and risk appetite fades
The Canadian Dollar (CAD) gives up its intraday gains against the US Dollar (USD) on Tuesday, pressured by a stronger Greenback amid renewed trade tensions.
New
2025.07.08 23:43CFTC Positioning Report: Bearish bets dominate the US Dollar
The most recent CFTC Positioning Report for the week ending July 1 highlights a significant uptick in risk-on trading. Market participants were actively evaluating the Trump-brokered ceasefire in the Middle East alongside further progress in the US-China trade negotiations.
New
2025.07.08 22:51AUD/USD rebounds as RBA defies rate cut forecasts, US Dollar stalls
The Australian Dollar (AUD) is making a recovery against the US Dollar (USD) on Tuesday, following the Reserve Bank of Australia's (RBA) decision to maintain its main interest rate at 3.85%.
New
2025.07.08 22:30Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
