Select Language

AUD/JPY rises above 94.00 despite increased risk aversion

blockHeadVisual
  1. HOME
  2. Get information
  3. World FX news
  4. AUD/JPY rises above 94.00 despite increased risk aversion

World FX news

search
Breaking news

AUD/JPY rises above 94.00 despite increased risk aversion

  • X
  • facebook
  • LINE
  • RSS
  • X
  • facebook
  • LINE
  • RSS
New update 2025.06.18 17:42
AUD/JPY rises above 94.00 despite increased risk aversion

update 2025.06.18 17:42

  • AUD/JPY may lose ground as safe-haven demand rises amid escalating Middle East tensions.
  • President Trump demanded Iran's "unconditional surrender."
  • Japanese PM Ishiba stated that the cash handout is the quickest way to support low-income households.

AUD/JPY holds gains after registering nearly 0.50% losses in the previous session, trading around 94.20 during the European hours on Wednesday. However, the upside of the currency cross could be limited due to heightened safe-haven demand, driven by escalating Middle East tensions. This increased risk aversion puts downward pressure on the risk-sensitive Australian Dollar (AUD) while contributing support for the Japanese Yen (JPY).

US President Donald Trump posted on his social media platform on Tuesday, calling for Iran's "unconditional surrender." The US military is deploying more fighter aircraft to strengthen its presence, three officials told. Meanwhile, Israel may intensify its attacks on Iran, while the United States (US) is considering expanding its role in the conflict.

President Trump said that he wants a permanent end to Iran's route to nuclear weapons following his early departure from the G-7 meeting in Canada. However, Tehran has reportedly urged several countries, including Oman, Qatar, and Saudi Arabia, to urge US President Donald Trump to declare an immediate ceasefire.

Traders await Australia's upcoming labor data, including Employment Change and Unemployment Rate, scheduled to be released later this week. The jobs figures will likely offer fresh impetus to the domestic economy and shape expectations for the Reserve Bank of Australia's (RBA) policy outlook.

On Wednesday, Japanese Prime Minister Shigeru Ishiba said that the cash handout is the quickest and most effective way to help low-income households cope with high prices. Ishiba said that he had agreed with President Trump to continue ministerial-level tariff talks and will continue to work intensely to achieve a trade deal with the US.

Risk sentiment FAQs

In the world of financial jargon the two widely used terms "risk-on" and "risk off'' refer to the level of risk that investors are willing to stomach during the period referenced. In a "risk-on" market, investors are optimistic about the future and more willing to buy risky assets. In a "risk-off" market investors start to 'play it safe' because they are worried about the future, and therefore buy less risky assets that are more certain of bringing a return, even if it is relatively modest.

Typically, during periods of "risk-on", stock markets will rise, most commodities - except Gold - will also gain in value, since they benefit from a positive growth outlook. The currencies of nations that are heavy commodity exporters strengthen because of increased demand, and Cryptocurrencies rise. In a "risk-off" market, Bonds go up - especially major government Bonds - Gold shines, and safe-haven currencies such as the Japanese Yen, Swiss Franc and US Dollar all benefit.

The Australian Dollar (AUD), the Canadian Dollar (CAD), the New Zealand Dollar (NZD) and minor FX like the Ruble (RUB) and the South African Rand (ZAR), all tend to rise in markets that are "risk-on". This is because the economies of these currencies are heavily reliant on commodity exports for growth, and commodities tend to rise in price during risk-on periods. This is because investors foresee greater demand for raw materials in the future due to heightened economic activity.

The major currencies that tend to rise during periods of "risk-off" are the US Dollar (USD), the Japanese Yen (JPY) and the Swiss Franc (CHF). The US Dollar, because it is the world's reserve currency, and because in times of crisis investors buy US government debt, which is seen as safe because the largest economy in the world is unlikely to default. The Yen, from increased demand for Japanese government bonds, because a high proportion are held by domestic investors who are unlikely to dump them - even in a crisis. The Swiss Franc, because strict Swiss banking laws offer investors enhanced capital protection.

Date

Created

 : 2025.06.18

Update

Last updated

 : 2025.06.18

Related articles

Show more

Writer

FXStreet

Financial media

arrow
FXStreet

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?
No loading Yes loading

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.

Previous article

prev

The threat of an Oil price shock - Standard Chartered

Next article

ECB's Panetta: Not pre-committing to a defined course on monetary policy

prev

Most viewed

EUR/JPY Price Forecast: Maintains position above 171.50, targets fresh one-year highs

EUR/JPY edges higher after registering losses in the previous session, trading around 171.60 during the European hours on Thursday. The bullish bias is strengthening as the technical analysis of the daily chart shows that the currency cross moves upwards within the ascending channel pattern.
New
update2025.07.10 17:42

EUR/USD: Any advance is likely part of a higher range of 1.1700/1.1755 - UOB Group

Euro (EUR) could edge higher against US Dollar (USD); any advance is likely part of a higher range of 1.1700/1.1755. In the longer run, no change in view; there is still a chance (albeit a limited one) for EUR to pull back to 1.1660, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
New
update2025.07.10 17:41

EUR: Volatility declining ahead of EU-US deal - ING

EUR/USD 1-week historical volatility is back below 7.0, confirming markets' extra caution in dealing with Trump's tariff announcements. By comparison, this peaked at 20 in April, and was above 9.0 only a couple of weeks ago, ING's FX analyst Francesco Pesole notes.
New
update2025.07.10 17:38

Forex Today: Trump tariff letters keep markets on edge

Here is what you need to know on Thursday, July 10:
New
update2025.07.10 17:31

FOMC minutes back two cuts view - OCBC

On FOMC minutes, while it reflected a divided committee as expected, key quotes include the following, OCBC's FX analysts Frances Cheung and Christopher Wong note.
New
update2025.07.10 17:29

USD/BRL holds ground near 5.60 after rising sharply due to Trump's 50% tariff on Brazil

USD/BRL remains stronger after registering approximately 2.5% gains in the previous session, trading around 5.60 during the European hours on Thursday.
New
update2025.07.10 17:13

EUR/USD appreciates within range as the market digests Trump latest tariff threats

The EUR/USD pair advances on Thursday with a moderate risk appetite returning to the markets.
New
update2025.07.10 17:00

Silver Price Forecast: XAG/USD returns above $36.50 buoyed by a softer US Dollar

Silver (XAG/USD) appreciated on Thursday, with precious metals drawing support from a somewhat weaker US Dollar, as Treasury yields dropped on the back of dovishly tilted FOMC minutes and a strong auction of US bonds on Wednesday.The minutes of the last Federal Reserve meeting confirmed a deep diver
New
update2025.07.10 16:54

EC President von der Leyen: Working non-stop to find an initial agreement with the US

European Commission President Ursula von der Leyen said on Thursday, "we are working non-stop to find an initial agreement with the US to keep tariffs as low as possible and to provide the stability that businesses need."
New
update2025.07.10 16:38

AUD/JPY rebounds toward 96.00 near five-month highs

AUD/JPY rises after registering mild losses in the previous session, trading around 95.90 during the European hours on Thursday.
New
update2025.07.10 16:36

Disclaimer:arw

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.

arw
  • Facebook
  • Twitter
  • LINE

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

I agree
share
Share
Line

Line
Facebook

Facebook
X

Twitter
Cancel