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.
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
