AUD/JPY gains ground after recovering daily losses, trading around 114.30 during the Asian hour on Thursday. The currency cross receives support as the Australian Dollar (AUD) gains ground following the release of improved Australian employment data.

Japanese Finance Minister Satsuki Katayama reiterated on Thursday that his government was “ready to take decisive action on foreign exchange as needed.”

Australia Part-Time Employment: 47K (June) vs 35.2K

Australia Employment Change s.a. came in at 76.3K, above expectations (15K) in June

Australia Participation Rate above expectations (66.7%) in June: Actual (67%)

Australia Unemployment Rate s.a. in line with forecasts (4.4%) in June

Australia Full-Time Employment climbed from previous 5.2K to 29.3K in June

West Texas Intermediate (WTI) oil price extends gains for the fifth consecutive day, trading around $87.30 per barrel during the Asian hours on Thursday. Crude oil prices surged as escalating Middle East tensions stoked fears of widespread supply disruptions.

Iran’s Foreign Minister Abbas Araghchi said that Tehran would respond in kind to any attack on its infrastructure after US President Donald Trump threatened to bomb a bridge or power plant for every ship targeted in the Strait of Hormuz, the Guardian reported on Wednesday. 

South Korea Gross Domestic Product Growth (QoQ) above expectations (0.4%) in 2Q: Actual (0.6%)

South Korea Gross Domestic Product Growth (YoY) came in at 3.7%, above expectations (3.5%) in 2Q

Commerzbank highlights South Korea’s exports rising over 50% year-on-year in early July, marking a seventh month of double-digit growth, driven by semiconductors and AI-related data centre demand.

United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann see USD/CNH consolidating in the near term after recent downside moves. Their 24-hour view expects the Dollar to trade between 6.7635 and 6.7755 as downward pressure has eased.

DBS Group Research economist Ma Tieying analyses South Korea’s new South Korean Won (KRW) internationalisation roadmap, unveiled by the Ministry of Finance and Economy, Bank of Korea and Financial Services Commission.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note USD/SGD is trading just above 1.29 after a quiet session, with momentum only tentatively firmer.

Commerzbank’s FX research notes USD/CNY trading around 6.77, slightly lower on the day.

United States 20-Year Bond Auction: 5.163% vs 4.927%

Russia Industrial Output above expectations (0.1%) in June: Actual (0.6%)

Standard Chartered economists Carol Liao and Shuang Ding argue that China’s July Politburo meeting will prioritise implementation of existing fiscal plans over new stimulus. They expect fiscal execution to accelerate in H2 after a marked slowdown following front-loaded Q1 spending.

ING analysts discuss changes to US Section 232 aluminium tariffs aimed at incentivizing domestic smelting investment. Qualifying projects can import at 25% instead of 50%, but ING stresses this is a long-term industrial policy with limited near-term impact.

Rabobank’s FX Strategy team reviews Bank of Japan policy, noting that the slow rate-hike pace reflects exceptional shocks such as tariffs, war and domestic political changes.

Nomura strategists analyse the latest United Kingdom (UK) June inflation data, noting headline Consumer Price Index (CPI) fell to 2.6% as the Bank of England expected, but core and services inflation stayed sticky.

ING strategist Frantisek Taborsky reports the National Bank of Hungary (MNB) cut rates to 5.75% and confirmed dovish guidance, signaling further easing in August and possibly beyond. Markets have accepted renewed rate-cut pricing, and ING expects more dovish repricing.

Societe Generale economist Sam Cartwright analyzes June United Kingdom (UK) inflation, noting headline Consumer Price Index (CPI) at 2.6% year-on-year, below Bank of England (BoE) projections, with core inflation steady at 2.6%.

Brown Brothers Harriman’s Elias Haddad notes the British Pound (GBP) remains heavy versus the US Dollar (USD) and Euro (EUR) after a mixed United Kingdom (UK) June Consumer Price Index (CPI) report, with headline inflation cooling but core and services measures still sticky.

South Africa Retail Sales (YoY) increased to 2.3% in May from previous 1.3%

United States MBA Mortgage Applications increased to 1.9% in July 17 from previous -2.7%

The World Bank warned that the global economy is only "a few months" away from a worst-case scenario in which global growth slows to 1.3% while inflation rises to 4.5%, according to comments by Chief Economist Indermit Gill reported by Reuters.

Following his meeting with Chinese Foreign Minister Wang Yi in Manila on Wednesday, United States (US) Secretary of State Marco Rubio said that “Iran is in a lot of trouble.”

The British Pound (GBP) is facing renewed downward pressure across major currency pairs, forfeiting its recent gains as market participants digest a combination of cooling domestic inflation and growing fiscal uncertainty surrounding Prime Minister Andy Burnham’s economic agenda.