AUD/JPY trims its intraday gains, holding some gains around 100.50 during the European hours on Thursday. The risk-sensitive Australian Dollar (AUD) depreciates as the rising geopolitical tensions have dampened the risk appetite and undermined the AUD/JPY cross.The Israeli Broadcasting Authority (IBA) reported that Israel’s security cabinet has resolved to take decisive action in response to the recent Iranian attack. On Tuesday night, Iran launched more than 200 ballistic missiles and drone strikes targeting Israel.However, the downside risk for the AUD may be limited due to the hawkish outlook surrounding the Reserve Bank of Australia (RBA). Data released earlier this week showed stronger-than-expected retail sales growth for August, lowering the likelihood of an early rate cut by the RBA.On Thursday, Australia’s Trade Balance for August stood at 5,644 million month-over-month, surpassing market expectations of 5,500 million and slightly higher than July’s surplus of 5,636 million. However, both Exports and Imports declined by 0.2% month-over-month in August. Markets have almost fully discounted the possibility of a rate cut in November.The AUD/JPY cross received support as the Japanese Yen (JPY) faced challenges following blunt comments on monetary policy from the new Prime Minister (PM) Shigeru Ishiba, who met with Bank of Japan (BoJ) Governor Kazuo Ueda on Wednesday.Japan’s Prime Minister Ishiba stated, “I do not believe that we are in an environment that would require us to raise interest rates further,” according to Reuters. In the previous session, the Japanese Yen fell nearly 2% against the US Dollar (USD), marking its largest drop since February of last year.More By This Author:Silver Price Forecast: XAG/USD Depreciates To Near $31.50, Downside Seems Limited AUD/JPY Advances To Near 99.50 Due To Hawkish RBA Stance On Policy Outlook WTI Remains Sluggish Near $68.00 As OPEC+ Plans To Increase Output In December
