AUD/JPY sets for a decline towards 92.00 on stable Japan Employment data
|- AUD/JPY is declining towards 92.00 as China’s unrest-inspired volatility will stay longer.
- Stable Japan’s employment numbers may weigh on the cross ahead.
- This week, the Caixin Manufacturing PMI data will be of utmost importance.
The AUD/JPY pair is expected to extend its downside journey towards the crucial support of 92.00 as the Statistics Bureau of Japan has reported stable employment data. The Unemployment Rate has landed at 2.6%, higher than the expectations of 2.5% but in line with the prior release of 2.6%. While the Jobs/Applicants ratio has been recorded similarly to the projections at 1.35, higher than the former figure of 1.34.
The risk barometer is going through a rough phase as enlarging unrest in China against the rollback of Covid-19 lockdown measures by the Chinese authorities has crippled the Aussie dollar. After meeting the headlines of public protest against curbs, economists didn’t waste a second in providing weak economic projections for the Chinese economy.
No one could deny that the impact of weaker projections for China won’t restrict to the dragon economy only. Its trading partners like Australia and New Zealand are also facing the heat. China’s protest-inspired risk aversion theme has dragged the AUD/JPY pair to near the critical hurdle of 92.00.
It is worth noting that individuals’ demand for democracy in the place of dictatorship could bring political instability to the Chinese economy. This could weaken investors’ risk appetite further.
Going forward, investors will focus on the Caixin Manufacturing PMI data, which will release on Thursday. The economic data is seen lower at 48.6 vs. the prior release of 49.2. A weaker-than-projected Caixin Manufacturing data could escalate volatility in the cross ahead.
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