Australian Dollar Falls Against Yen on Weak Data Report

Key Moments

AUD/JPY Eases After Recent Advance

AUD/JPY edges lower during the Asian session on Thursday, trading close to 113.60. This pullback comes after the pair recorded gains of more than 0.5% in the previous session. The cross remains under pressure following the latest Australian labor market figures.

Australian Labor Market Weakens in April

Australia’s Unemployment Rate increased to 4.5% in April, up from 4.3% in March. The result exceeded market expectations, which had forecast no change at 4.3%. At the same time, Employment Change fell by 18.6K jobs in April, reversing a revised 23.3K increase in March and sharply missing the consensus estimate for a 17.5K gain.

PMI Data Signal Loss of Momentum

Survey data from S&P Global indicate that manufacturing and services activity in Australia softened. The preliminary Manufacturing Purchasing Managers’ Index (PMI) declined to 50.3 in May from 51.3 in April. The downturn was more notable in services, where the Services PMI slipped to 47.7 in May from 50.7 in April, moving into contraction territory. As a result, the Composite PMI weakened to 47.8 in May, down from 50.4 a month earlier.

Japanese Trade Data Bolster the Yen

AUD/JPY remains on the back foot as the Japanese Yen finds support from stronger trade numbers. Japan’s Merchandise Trade Balance Total swung to a surplus of JPY 301.9 billion in April 2026, compared with a deficit of JPY 149.5 billion in the same month a year earlier. The outcome also contrasted sharply with market projections, which had pointed to a deficit of JPY 29.7 billion.

Exports from Japan rose 14.8% year-on-year to JPY 10,507.3 billion, up from an 11.5% increase in March and marking the fastest pace in three months. Imports climbed 9.7% over the same period to JPY 10,205.4 billion. Although this represented a modest slowdown from the 10.9% gain in March, the import growth still beat expectations for an 8.3% rise.

BoJ Official Highlights Inflation Progress

Bank of Japan (BoJ) Policy Board Member Junko Koeda said on Thursday that Japan’s core inflation rate has approached 2%. Koeda also highlighted progress towards achieving the BoJ’s inflation goal, a key focus for policymakers in recent years.

Australian Employment Change Indicator Details

The Employment Change s.a. indicator, released by the Australian Bureau of Statistics, measures the monthly change in the number of employed persons in Australia, adjusted for seasonal patterns. Higher readings are generally associated with stronger consumer spending and economic growth and tend to be supportive for the Australian Dollar (AUD), while weaker readings are typically seen as negative for the currency.