The AUD/JPY pair trades sideways near 99.00 in Friday’s Asian session, holding close to a two-week low as traders remain cautious amid China’s sluggish trade data and BoJ rate hike speculation.

Fresh figures from China revealed disappointing Trade Balance data, highlighting persistent weakness in domestic demand and heightening uncertainty around global trade. This has dampened sentiment toward the risk-sensitive Australian Dollar (AUD), already pressured by the Reserve Bank of Australia’s lack of a hawkish tone.

Meanwhile, the Japanese Yen (JPY) finds modest support from safe-haven flows and lingering expectations that the Bank of Japan (BoJ) could move closer to a rate hike, following hints in the September meeting minutes. However, Japan’s softer consumption data and PM Sanae Takaichi’s pro-stimulus stance may still restrain the BoJ’s tightening ambitions.

Overall, the fundamental backdrop remains bearish for AUD/JPY, with any sustained break below 98.80 likely to accelerate downside momentum toward the sub-98.00 region in the near term.