Japanese Yen and Aussie Dollar Forecasts: Trade News and Aussie Inflation in Focus

USDJPY – Daily Chart – 050525

Don’t miss today’s full USD/JPY forecast with chart setups and trade ideas.

AUD/USD in Focus: Labor Market and Inflation

Across the Pacific, Australia’s economic calendar also draws attention. The AUD/USD is in the spotlight on Monday, May 5, with labor market and inflation data in focus. Economists forecast ANZ-Indeed Job Ads to rise 0.3% in April month-on-month (MoM), following a 0.4% increase in March.

Stronger job ads may signal robust labor demand, potentially boosting wages. Higher wages may fuel consumer spending and demand-driven inflation. While inflation figures for Q1 2025 supported a May RBA rate cut, tight labor market conditions could temper expectations for multiple RBA rate cuts. In this scenario, the Aussie dollar may trend higher. Conversely, a lower jobs ad reading could signal a more dovish RBA stance, weighing on the Aussie.

Economists forecast the TD-MI Inflation Gauge to increase 0.4% MoM in April, easing from a 0.7% rise in March. A softer inflation print could reinforce multiple RBA rate cut bets, impacting Aussie dollar demand. However, a hotter reading would signal rising inflation risks, supporting a more hawkish RBA rate path and Aussie dollar appetite.