AUD/JPY Falls To Near 109.50 As Australian Dollar Struggles On Geopolitical Risks

AUD/JPY loses ground after two days of gains, trading around 109.60 during the Asian hours on Thursday. The currency cross depreciates as the Australian Dollar (AUD) weakens after US President Donald Trump’s latest address showed no clear Middle East de-escalation, keeping geopolitical risk elevated.

The AUD remains subdued despite Australia’s Trade Surplus more than doubling in February to its highest level in seven months, supported by strong gains in gold and agricultural exports, while imports of gold and data processing equipment declined.

Australia’s Trade Surplus widened to AUD 5,686 million in February from a downwardly revised AUD 2,258 million previously, well above expectations of AUD 2,500 million and marking the largest surplus since July 2025. Meanwhile, Exports rose 4.9% MoM to a four-month high, recovering from a revised 1.6% decline, while imports fell 3.2% MoM to a seven-month low, reversing a revised 1.1% increase.

The downside of the AUD/JPY cross may be limited as the Japanese Yen (JPY) remains under pressure from rising oil prices, given Japan’s heavy reliance on Middle East crude imports. Trump signaled the US aims to conclude the conflict within two to three weeks, while warning that military operations could still intensify.

Meanwhile, new Bank of Japan (BoJ) board member Toichiro Asada adopted a cautious, data-dependent stance in his first remarks. Asada joins the nine-member board ahead of the April 27–28 policy meeting.