AUD/JPY extends its winning streak for the sixth consecutive day as the Australian Dollar (AUD) strengthens against the Japanese Yen (JPY) following the Reserve Bank of Australia's (RBA) meeting minutes, which has transformed market bias towards the possibility of no rate cuts soon. The AUD/JPY cross trades higher around 98.40 during the Asian hours on Wednesday.
The Australian Dollar (AUD) could face hurdles amid softer Aussie financial markets, as the S&P/ASX 200 Index sees its second successive decline, mirroring losses on Wall Street overnight. This downturn is primarily linked to sluggish performance in mining stocks and metal prices.
Additionally, the Australian Bureau of Statistics has unveiled mixed data on the Wage Price Index for the fourth quarter, with little observable impact on the Australian Dollar (AUD).
On the other side, the Ministry of Finance of Japan reported a Trade Balance figure better than expected, potentially supporting the Japanese Yen and thereby limiting gains in the AUD/JPY cross. Japan’s Merchandise Trade Balance Total showed a deficit of ¥1,758.3B in January, against the anticipated deficit of ¥1,925.9B and the previous reading of ¥68.9B.
Moreover, Imports (YoY) declined by 9.6%, greater than the expected drop of 8.4% and the previous decrease of 6.9%. However, Exports surged by 11.9% year-over-year, surpassing both the predicted 9.5% and the prior 9.7%.
On Tuesday, Japanese Finance Ministry official Atsushi Mimura indicated that the government is engaged in discussions with other nations regarding FX intervention. This stance may have provided some bolstering for the JPY.