AUD Plunges Against JPY as Joint US-Japan Intervention Boosts Yen

Australia's dollar has dropped to its lowest level against Japan's yen in nearly two months due to the strength of the Japanese currency. The AUD/JPY cross fell to around 110.00, a decline of over 0.50% for the day and its lowest level since early April.

The weakness of the Australian dollar was also attributed to reduced bets on an immediate rate hike by the Reserve Bank of Australia (RBA) and disappointing economic data from China.

On Monday, Japan's Finance Minister Satsuki Katayama confirmed that Japanese authorities had conducted a rare bilateral foreign exchange market intervention with the US on Friday. This move was followed by aggressive JPY short-covering, which put additional pressure on the AUD/JPY cross.