AUD/JPY firms up on reduced expectations of RBA rate cuts, inches higher to near 99.90
|- AUD/JPY extends its winning streak on positive employment figures from Australia.
- Australian Employment Change increased to 116.5K compared to the expected 40.0K in February.
- JPY weakens on the BoJ’s indication of accommodative financial conditions.
AUD/JPY continues to extend its gains that began on March 15, trading higher around 99.90 during the European session on Thursday. The Australian Dollar (AUD) maintained its upward trajectory supported by positive economic data from Australia, bolstering the AUD/JPY cross.
However, the Australian equity market moved back and forth but closed in positive territory, further reinforcing the AUD's gains. The ASX 200 Index experienced a surge, following a rally on Wall Street from the previous session.
In February, the seasonally adjusted Employment Change saw a significant surge to 116.5K, surpassing expectations of 40.0K and the previous figure of 15.3K. Moreover, the Unemployment Rate increased by 3.7%, below the anticipated 4.0% and the previous 4.1%.
Australia's private sector demonstrated resilience in March, extending its expansion for the second consecutive month. The preliminary Judo Bank Services PMI rose to 53.5 from the previous 53.1, indicating continued growth in the services sector. Additionally, the Composite PMI increased to 52.4 from 52.1, reflecting a broad-based expansion in services.
However, there was a decline in the Manufacturing PMI, dropping to 46.8 from the previous 47.8. This contraction suggests a slowdown in manufacturing activity during the same period, potentially influenced by various factors such as supply chain disruptions or weakening demand.
The Japanese Yen (JPY) faces losses amidst the prevailing risk-on sentiment. The Bank of Japan (BoJ) recently indicated that financial conditions would remain accommodative, refraining from guiding future policy steps or the pace of policy normalization.
Chief Cabinet Secretary Yoshimasa Hayashi of Japan stated on Thursday that he is closely monitoring foreign exchange (FX) movements with urgency. He emphasized the need to closely observe the impact on both the Japanese and global economies following the Federal Reserve's decision.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.