Australian Dollar Cuts Yen Losses as Trade Surplus Back

Key Moments

AUD/JPY trades near 114.10 during Thursday’s Asian session, reducing earlier losses but still in negative territory.
Australia’s Trade Balance for April moves to a 1,791M surplus month-over-month, reversing a prior deficit of 1,024M (revised from -1,841M).
Japanese Yen strengthens as markets anticipate a potential Bank of Japan rate hike and Tokyo signals readiness for “appropriate action” on currency volatility.

Cross Overview: AUD/JPY Price Action

AUD/JPY recovers part of its earlier decline on Thursday, though the pair remains lower on the day and trades around 114.10 during Asian hours. The cross is seeing modest support from the Australian Dollar (AUD) following the release of Australia’s latest Trade Balance figures.

Australia’s Trade Balance Swings Back to Surplus

Fresh data from the Australian Bureau of Statistics (ABS) on Thursday shows that Australia’s Trade Balance shifted to a surplus of 1,791M month-over-month in April. This follows a deficit of 1,024M in the previous reading, which had been revised from -1,841M. Market expectations had pointed to a surplus of 1,800M.

Exports from Australia rose by 7.2% month-over-month in April, recovering from a 2.5% decline in March, which was revised from -2.7%. Imports increased by 0.8% month-over-month, easing from a prior 12.2% rise, which was revised from 14.1%.

Indicator	Period / Timing	Actual	Consensus	Previous	Source
Trade Balance (MoM)	Thu Jun 04, 2026 01:30	1,791M	–	-1,841M	Australian Bureau of Statistics

Yen Supported by Policy Expectations and Risk Backdrop

The Japanese Yen (JPY) is also gaining traction as investors continue to factor in the possibility of another interest-rate increase by the Bank of Japan (BoJ) later this month. Policymakers are contending with higher costs and a persistently weak Yen, conditions that have been amplified by ongoing tensions in the Middle East.

BoJ Governor Kazuo Ueda adopted a hawkish stance during a speech in Tokyo on Wednesday. He emphasized that the central bank must carefully weigh the balance of a rate hike if inflationary pressures begin to pose a greater threat than risks to overall economic growth.

Tokyo Signals Vigilance on Currency Volatility

Authorities in Tokyo remain highly attentive to movements in the foreign exchange market. Finance Minister Satsuki Katayama on Tuesday declined to comment on specific market fluctuations or recent intervention data, but she cautioned that persistent instability in energy markets means Japan must stay ready to take “appropriate action.”

Positioning potential measures as part of broader economic stewardship rather than a narrow effort to defend the exchange rate, Katayama indicated that Tokyo is closely tracking market developments in coordination with the United States.

Trade Balance as a Market Indicator

The Trade Balance, released by the Australian Bureau of Statistics, measures the difference between the value of Australian goods exports and imports. Export figures provide insight into overall growth dynamics in Australia, while import levels offer a gauge of domestic demand conditions. Because it offers an early signal of net export performance, a sustained improvement in demand for Australian exports that strengthens the Trade Balance is typically viewed as supportive for the AUD.