- Australia adds whopping 44,000 jobs in August, jobless rate steadies at 5.3%.
- Renewed US-China trade lifts sentiment ahead of the US CPI.
The AUD/JPY pair extended its recovery mode into a fourth day today amid a renewed risk-aversion wave and hit the highest level since Sept 6th following the release of upbeat Australian August jobs report.
AUD/JPY: Focus on trade and US CPI
The AUD/JPY cross accelerated its advances after the Aussie got a fresh boost from a big beat on the Australian jobs numbers, with the headline employment change showing +44k job additions versus +15k expected. A stronger Australian labor market report could prompt the RBA to hike the cash rate sooner (than later).
More so, the fear gauge, AUD/JPY, remains well bid amid a better risk environment induced by the renewed US-China trade optimism after the Wall Street Journal (WSJ) reported yesterday the US is reaching out China for a new round of trade talks.
Attention now turns towards the key US CPI report fresh US dollar moves, which could have a significant impact on both the AUD and JPY, In the meantime, the cross will continue to get influenced by the broader market sentiment.
AUD/JPY Technical Levels
Resistance: 80.30 (Sept 6 high), 80.50 (psychological level), 81.27 (50-DMA).
Support: 79.64 (daily pivot), 79.47 (5-DMA), 79.00 (round number).
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