AUD/JPY HOVERS AROUND 91.00, EYES ON RENEWED AUSTRALIA-EU TRADE NEGOTIATIONS
AUD/JPY HOVERS AROUND 91.00, EYES ON RENEWED AUSTRALIA-EU TRADE NEGOTIATIONS
The AUD/JPY currency pair has recovered its daily losses and is trading above the 91.00 mark during Thursday's Asian session.
This movement reflects renewed optimism in the Australian Dollar (AUD), supported by developments in trade negotiations between Australia and the European Union (EU).
After a significant setback in October 2023, when negotiations for a free trade agreement (FTA) between Australia and the EU collapsed due to disagreements over market access and agricultural protections , both parties have resumed talks. The resumption aims to address previous concerns and work towards a mutually beneficial agreement.
An FTA with the EU holds substantial economic potential for Australia, providing access to a market of approximately 446 million people with a nominal GDP of US$18.6 trillion in 2023. Key benefits include improved market access for Australian exports, guaranteed access for Australian services providers, expansion of two-way investment flows, and a more predictable business environment .
The renewed optimism surrounding the trade negotiations has positively influenced the AUD, leading to its appreciation against the JPY.
Traders and investors are closely monitoring these developments, anticipating that a successful trade agreement could bolster Australia's economic prospects and, by extension, the value of the AUD.
