13.06.2025 12:09

The AUD/JPY currency pair demonstrated remarkable resilience on Friday, recovering significantly from its initial losses despite a prevailing risk-averse market sentiment. This rebound followed a sharp dip to an intraday low of 92.32 during European trading hours. While the pair ultimately closed down 0.5% at approximately 93.30, the recovery showcased a degree of market stability amidst geopolitical turmoil.

The initial downturn in the AUD/JPY was a direct consequence of escalating tensions in the Middle East. Israel's preemptive strikes on Iranian military and nuclear facilities triggered a flight to safety, reducing demand for riskier assets like the Australian dollar. This risk aversion was a major factor influencing the currency pair's early performance.

Further highlighting the impact of geopolitical events, Iran responded to Israel's attacks with a large-scale drone offensive. According to reports from sources such as the BBC, approximately 100 drones were launched towards Israel, escalating the conflict and further contributing to market uncertainty. The Bank of Japan's anticipated decision next week to maintain interest rates at 0.5% is unlikely to significantly impact the AUD/JPY in the short term given the overriding influence of geopolitical developments.

The Australian dollar weakened against most major currencies on Friday. A heat map illustrating percentage changes revealed the USD as the strongest performer against the AUD, showing a 0.98% increase. Other notable changes included a 0.37% decline against the Euro, a 0.40% decrease against the British Pound, and a 0.38% drop against the Japanese Yen. This data, derived from internet sources, underscores the broad-based weakness of the Australian dollar amidst global market fluctuations. The presented heat map clearly illustrates these relative strength and weakness shifts between various major currencies.