AUD/JPY attracts some buyers above 102.00 as China’s Trade Balance grows more than expected

• AUD/JPY jumps to around 102.05 in Thursday’s Asian session, up 0.49% on the day. 
• Risk-on sentiment, the BoJ rate-hike uncertainty weigh on the Japanese Yen.
• The encouraging Chinese economic data support the China-proxy Australian Dollar. 

The AUD/JPY cross extends its upside to near 102.05 on Thursday during the Asian trading hours. The risk-on mood and the uncertainty surrounding the Bank of Japan’s (BoJ) rate hike exert some selling pressure on the Japanese Yen (JPY). 

The victory of Republican Donald Trump in the US presidential election drags the JPY lower. Additionally, the minutes released by the BoJ on Wednesday showed that the Japanese central bank would not raise its policy interest rate under financial and capital market instability. 

“In the current phase, the BoJ should patiently maintain the current accommodative financial conditions to support economic activity,” another Policy Board member said. The BoJ rate-hike uncertainty is likely to undermine the JPY in the near term. 

Nonetheless, the downside for the JPY might be capped after the verbal intervention from the Japanese authorities. Japan’s top currency diplomat Atsushi Mimura said on Thursday that authorities were ready to act against “excessive” currency moves.

On the other hand, China’s Trade Balance grew more than expected in October as Exports rose, boosting the China-proxy Australian Dollar (AUD). The Trade Balance grew to $95.27 billion in October versus $81.71 billion prior, higher than expectations of $75.1 billion. Meanwhile, Exports climbed by 12.7% YoY in October, compared to 2.4% in the previous reading. The figure was above the market consensus of 5.0%.