AUD/JPY Pulls Back Amid Safe-Haven Demand and Slowing Chinese Trade

The AUD/JPY pair saw a pullback on Friday, ending its three-day winning streak and trading near 111.30 in Asian hours.

This move was largely driven by safe-haven demand favoring the Japanese Yen due to rising geopolitical tensions in the Strait of Hormuz.

The Chinese economy's June Trade Balance figures were also released, exceeding forecasts in both US Dollar and Chinese Yuan terms but showing moderation in export and import growth.

Rabobank still sees a risk of an additional RBA rate hike this year, which could support the Australian Dollar's value over the next 12 months.