AUD/JPY trades around 110.50 on Friday at the time of writing, posting a modest 0.04% decline on the day. The pair remains broadly stable as both the Australian Dollar (AUD) and the Japanese Yen (JPY) benefit from growing expectations of monetary tightening by their respective central banks.

Michael Pfister at Commerzbank notes the European Central Bank (ECB) delivered a second rate hike this year and raised its inflation projections above 2%, which their economists see as pointing to another hike in December.

The Canadian Dollar (CAD) underperforms its major currency peers on Friday. The North American currency faces selling pressure as Oil prices have retreated sharply after posting a fresh four-month high.

The GBP/USD pair struggles to capitalize on its modest intraday gains and trades near the 1.3500 psychological mark during the first half of the European session on Friday.

The Euro (EUR) retreated below 179.00 against the Japanese Yen (JPY) on Friday, as the mild recovery seen after Thursday's European Central Bank (ECB) meeting failed to find follow-through above 179.50.

The Euro (EUR) trades subduedly at around 1.1608 against the US Dollar (USD) during the European trading session on Friday.

Here is what you need to know on Friday, September 11:

The Japanese Yen (JPY) ticks up against the US Dollar (USD) on Friday, trimming some losses after a moderate reversal on Thursday.

The NZD/USD pair rises to around 0.5835, snapping the four-day losing streak during the early European trading hours on Friday. However, the potential upside for the pair might be limited as markets turn cautious ahead of the key US Consumer Price Index (CPI) inflation data later on Friday. 

The Australian Dollar (AUD) is up 0.22% at around 0.7175 against the US Dollar (USD) during the European trading session on Friday.

The British Pound (GBP) attracts significant bids against its peers, with the GBP/USD pair rising to near 1.3518, as the United Kingdom (UK) Office for National Statistics (ONS) has reported strong monthly Gross Domestic Product (GDP) data for July. Th

USD/CAD extends its gains for the third consecutive day, trading around 1.3840 during the Asian hours on Friday. The technical analysis of the daily chart indicates the pair is remaining within the descending channel pattern, signalling a persistent bearish bias.

The Indian Rupee (INR) extends its downward spiral against the US Dollar (USD) for the fourth trading day on Friday, with the USD/INR pair rising to near 95.80 in the opening session.

The EUR/USD pair remains under some selling pressure for the second straight day on Thursday, though it lacks follow-through and holds above the weekly low, which it touched the previous day.

The EUR/JPY cross trades in negative territory around 179.10 during the early European session on Friday. The expectation of a Bank of Japan (BoJ) rate hike next week provides some support to the Japanese Yen (JPY) against the Euro (EUR). 

USD/CHF gains ground for the third consecutive day, trading around 0.8140 during the Asian hours on Friday. The pair appreciates as the US Dollar (USD) gains ground as expectations grow for a Federal Reserve (Fed) rate hike in September.

Silver price (XAG/USD) extends its losses for the second successive day, trading around $63.30 per troy ounce during Asian hours on Friday. Silver prices are declining as expectations grow for a Federal Reserve (Fed) rate hike in September.

USD/CAD extended its gains for the third consecutive day, trading around 1.3840 during the Asian hours on Friday. The pair appreciates as the commodity-linked Canadian Dollar (CAD) struggles due to lower oil prices.

The NZD/USD pair gains some positive traction during the Asian session on Friday, reversing a part of the previous day's heavy losses to sub-0.5800 levels, or the lowest since late July.

The GBP/USD pair trades on a flat note near 1.3510 during the early Asian session on Friday. Traders prefer to wait on the sidelines ahead of the key US August Consumer Price Index (CPI) inflation report later on Friday. 

The USD/JPY pair struggles to capitalize on the previous day's recovery momentum and edges lower during the Asian session on Friday.

On Friday, the People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead at 6.7743 compared to the previous day's fix of 6.7766 and 6.7174 Reuters estimate.

The EUR/USD pair holds steady around 1.1610 during the early Asian session on Friday. Traders continue to assess a hawkish hike from the European Central Bank (ECB).

The Australian Dollar ended Thursday’s session with a 0.80% loss against the US Dollar after US producer inflation exceeded estimates, triggering pricing for a more hawkish Federal Reserve. The AUD/USD trades at 0.7159 after reaching a peak of 0.7223.

The Australian Dollar weakens versus the Japanese Yen as risk-appetite shifted sour due to the escalation of the US-Iran conflict, which has broadened to a fight between Yemen’s Houthis vs Saudi Arabia, who fight for control of the Red Sea. The AUD/JPY exchange rate is 110.53, down 0.27%.

NZD/USD is clinging to the 0.5800 mark at the start of the Asian session on Friday after dipping to a near two-month low around 0.5797 earlier in the American session.

The US Dollar Index (DXY) reclaimed the 99.00 barrier and then some, rebounding firmly as the hot Producer Price Index (PPI) rose 5.4% over the year to August, hardening expectations for a Fed rate hike at next week's meeting.

The Kiwi Dollar fails to clear a confluence of key Simple Moving Averages (SMAs) and dives below 0.5800, printing a near two-month low of 0.5797. At the time of writing, NZD/USD is down 0.65% and poised to test lower levels if it closes below 0.58.

EUR/JPY rises above the 179.00 mark on Thursday in the aftermath of the European Central Bank (ECB) raising its deposit rate by a quarter point to 2.50%, its second hike since the US-Iran war broke out.

Scotiabank strategists Shaun Osborne and Eric Theoret highlight that USD/JPY is edging higher as the Japanese Yen trades defensively after its sharp late-August rally. The Bank of Japan’s messaging is described as unequivocally hawkish ahead of a widely anticipated 25 bps hike on September 18.