⚡ Australian Dollar weakens against Japanese Yen following China’s Services PMI data

The Australian Dollar fell against the Japanese Yen for a fourth straight session Thursday, trading near 113.50 during Asian market hours as disappointing Chinese economic data weighed on the currency pair. The AUD remains under pressure following a series of mixed economic indicators from both Australia and China, Australia’s largest trading partner.

China’s Services PMI data triggered the latest selloff, adding to existing concerns about economic momentum in the region. The weaker-than-expected Chinese data raises questions about demand for Australian exports, particularly commodities, which form a crucial component of bilateral trade. The sustained four-day decline in AUD/JPY reflects growing market anxiety about the health of China’s economic recovery and its ripple effects across Asia-Pacific currencies.

Traders are closely monitoring whether the pair can hold support at current levels or if further downside pressure will emerge as market participants digest the implications of slowing Chinese service sector activity.

FXnCO Insight

Traders should watch for additional volatility in commodity-linked currencies as China’s economic data continues to shape regional FX flows and risk sentiment.

Source: FXStreet