- AUD/JPY drops heavily after downbeat jobs report from Australia.
- The risk barometer bears the burden of virus woes, geopolitical tension.
- Aussie-China trade tussle exerts an additional downside burden on the quote.
- A light calendar keeps qualitative factors on the driver’s seat.
AUD/JPY dropped from 73.44 to 73.02, currently around 73.11 after Australia’s May month employment data flashed sluggish reports during the early Thursday. In doing so, the quote refreshes a three-day low while flashing 0.87% loss by the press time.
Australia’s Unemployment rate rises beyond 7.0% forecast to 7.1% whereas Employment Change declines below -125K expected to -227.7K. Further details suggest that the Full-Time Employment recovered but Participation Rate softened.
Read: Breaking: Australia: Unemployment Rate rises to 7.1%, loses 227.7K jobs in May, Aussie falls further
Earlier during the day, Japan’s Economy Minister Yasutoshi Nishimura said to hold the idea of relaxing restrictions on travel across prefectures. The reason could be spotted in the latest virus figures from the Asian major that takes rounds to the monthly high. It’s worth mentioning that the Reuters’ survey portraying Japanese firms’ pessimism also weighs on the quote.
Further, virus statistics from China and Beijing, as well as from the US and Germany, also keep the fears of the deadly virus’s another round on the cards. Additionally, geopolitical tension concerning North-South Korea and India-China also weigh on the market’s risk-tone sentiment.
Amid all these catalysts, the US 10-year Treasury yields drop over three basis points to revisit 0.70% mark while stocks in Australia and Japan register losses over 1.0% by the press time.
Having witnessed the initial market reaction of the Aussie employment data, traders may now shift back to the risk catalysts for further direction. In doing so, the virus updates as well as news concerning geopolitical tension in Asia, also relating to Iran, might be preferred for a watch.
Technical analysis
The pair struggles around a three-month-old support line, near 73.40, a break of which can drag the quote further south towards a 200-day SMA level of 72.30. Meanwhile, 10-day SMA and an eight-day-old falling trend line, around 74.50, guards the AUD/JPY pair’s short-term upside.
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