AUD Languishes near April Low as Joint US-Japan Intervention Lifts Yen

The Australian Dollar (AUD) is struggling to gain momentum against the Japanese Yen (JPY), falling to its lowest level since early April. The AUD/JPY cross has dropped for five consecutive days, with spot prices currently trading around the 110.00 psychological mark, down over 0.50% for the day.

The weakness in the AUD is attributed to reduced rate hike bets by the Reserve Bank of Australia (RBA) and China's dismal PMI release. Meanwhile, Japan's Finance Minister Satsuki Katayama confirmed that Japanese authorities conducted a rare bilateral foreign exchange market intervention with the US on Friday to halt the JPY's decline.

US Treasury Secretary Scott Bessent stated that Washington would not hesitate to participate in further coordinated action if disorderly moves in the JPY persist. This has led to aggressive follow-through JPY short-covering, putting pressure on the AUD/JPY cross.