In the foreign exchange market from 6 to 7 August, renewed tensions over Iran and developments in US employment data affected USD/JPY. Dollar-buying pressure could increase depending on the US employment report.
Australia's June trade surplus came to A$1.929 billion, overturning market expectations for a deficit as exports of gold and iron ore recovered sharply. Initial US jobless claims came to 199,000, below the forecast of 205,000, keeping claims below 200,000 for the third consecutive week. The improvement in the labor market was cited as a factor behind this, with jobless claims continuing to decline from the previous month.
Meanwhile, reports indicated that tensions in the Middle East were set to flare up again, increasing concerns over navigation risks in the Strait of Hormuz. As a result, crude oil prices rebounded and US long-term yields also rose.
USD/JPY tested the post-intervention recovery highs reached after Japanese and US authorities intervened to buy yen, and nervous trading could continue as the pair breaks above the ¥158 level. The US July employment report is due tonight, and a strong result would increase expectations of a September rate hike by the Federal Reserve, making a further strengthening of dollar-buying pressure highly likely.