The AUD/JPY pair is trading slightly higher, hovering near 90.70 during Thursday’s European session, supported by a retreat in the Japanese Yen following underwhelming export data from Japan.
Japan’s exports rose just 3.9% year-on-year in March, falling short of the 4.5% forecast and marking a sharp decline from February’s 11.4% surge. The slowdown in export growth, which had previously been boosted by U.S. steel and aluminum tariffs, has weighed on the Yen. Despite the disappointing headline figure, a rebound in imports hints at stable domestic demand.
In the broader trade context, Japan’s Economy Minister Ryosei Akazawa clarified that currency concerns are not part of the current trade negotiations with Washington. Japan continues to push for the complete removal of Trump-era tariffs, including a 10% base duty and an additional 25% levy on car exports. Akazawa expressed optimism over reaching a mutually beneficial agreement within the ongoing 90-day negotiation window, as the U.S. also appears eager for a resolution.
On the Australian front, the Aussie Dollar remains under pressure after mixed domestic jobs data released on Thursday. The Unemployment Rate edged up to 4.1% in March, slightly below the 4.2% estimate, while Employment Change came in at 32.2K, missing expectations of 40K.
Still, the AUD found some footing as global risk appetite improved. This was largely driven by U.S. President Donald Trump’s announcement of exemptions for key technology products—such as smartphones, semiconductors, and solar panels—from proposed tariffs. These exemptions benefit goods primarily manufactured in China, Australia’s top trading partner and a key consumer of its exports. However, tensions remain high, with Trump simultaneously launching a new investigation into potential tariffs on critical minerals—an area that could have broader implications for the Australia-China trade relationship.
While AUD/JPY has managed to recover recent losses, upside momentum may remain capped as both currencies face their own set of challenges in the global macroeconomic landscape.
