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fxAug 6, 2026, 8:47 AM

AUD/JPY Slips as Fiscal Concerns Weigh on Yen, Capping Aussie Losses

The Australian dollar snapped a two-day rally against the yen on Thursday amid fiscal concerns that pressured the Japanese currency, limiting the pair’s downside.

AUDJPY

The AUD/JPY cross declined on Thursday, breaking a two-day winning streak as the Australian dollar struggled to hold gains. The pair’s pullback comes despite a broader bounce this week from multi-week lows.

Fiscal concerns in Japan continued to weigh on the yen, which helped limit the Aussie’s losses. The dynamic left the cross in a tug-of-war, with downside pressure from Aussie weakness but a floor from yen softness.

Source: FXStreet Forex News