Forex
AUD/JPY eases near 100.85 as strong Australian jobs data offsets weak Japanese growth
The Australian Dollar slipped slightly against the Japanese Yen on Monday, trading around 100.85 during the early European session. Despite the mild pullback, downside pressure remains limited after stronger-than-expected Australian employment figures reinforced expectations that the Reserve Bank of Australia will maintain a cautious and steady policy stance.
In contrast, fresh Japanese data weighed on the Yen after the Cabinet Office reported that Japan’s economy contracted 1.8% annualized in Q3 2025, marking the first decline in six quarters. The weaker-than-expected result lowered market expectations for a Bank of Japan rate hike in December, placing additional pressure on the Yen and offering support to the AUD/JPY pair.
Market sentiment remains broadly constructive for the cross, supported by the policy divergence between Australia and Japan and easing expectations of near-term tightening by the BoJ. Key attention in the near term will remain on developments in Japan’s economic outlook and upcoming RBA commentary, Tomorrow at 04:30 (+4 GMT).
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