AUD Holds Gains Against JPY Amid Narrowed Trade Surplus
Australia's Trade Balance data for August revealed a narrowed overall trade surplus of A$495 million, down from July's revised A$1,351 million. This helped maintain strength in the Australian Dollar (AUD) despite a rise in imports by 5.8% month-over-month.
The AUD/JPY currency cross halted its seven-day losing streak, trading around 109.80 during Asian hours on Thursday. The Bank of Japan's third-quarter Tankan manufacturing index rose to 24, missing consensus expectations and weighing on sentiment for the yen.
Bank of Japan policy summary hinted at further interest rate hikes following September's rise to a 31-year high. Strategists at Societe Generale noted that the Yen has stood out in G10 FX trading this month, with heightened sensitivity around potential official action in Japan discouraging investors from rebuilding short Yen positions.