- AUD/JPY surges nearly 30 pips as Australia’s Employment Change and Unemployment Rate please Aussie buyers.
- Risk tone has been sluggish ahead of the busy calendar, cautious sentiment surrounding the US President Trump’s impeachment.
- BOJ, trade/political headlines will be in the spotlight.
With an unexpected decline in Australia’s Unemployment Rate, coupled with better than forecast increase in Employment Change, AUD/JPY rises to 75.40 during the Asian session on Thursday.
Australia’s November month Employment Change rose beyond 14K forecast to 39.9K while the Unemployment Rate slipped to 5.2% versus 5.3% forecast and prior. Further, the Participation Rate remained unchanged at 66%.
The pair’s earlier could be attributed to the US-China trade developments and market’s rush for the Aussie ahead of likely improvement in employment data.
At the trade front, the US diplomats have recently been praising the phase-one but the White House Adviser Larry Kudlow said to keep a close eye on China’s compliance. On the other hand, Global Times cites Chinese counterparts saying that the US President Donald Trump’s impeachment won’t change their trade stance.
Having witnessed initial reaction to the Aussie data, the pair traders will now focus on the Japanese side with the BOJ meeting lined up in the busy calendar.
Koichi Hamada, an adviser to Japanese PM Shinzo Abe recently crossed wires while saying that the Bank of Japan (BOJ) must avoid too low interest rates. Even so, the Japanese central bank isn’t expected to alter its present monetary policy at today’s meeting. As a result, press conference by the BOJ President Haruhiko Kuroda will be the key to watch.
Technical Analysis
Unless providing a clear break beyond the weekly descending resistance line, at 75.20, the short-term descending triangle is less likely to get confirmed, which in turn will keep dragging prices towards 61.8% Fibonacci retracement of November-December upside and December 10 low, close to 74.35 and 73.80 respectively.
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