AUD/JPY buyers cheer surprise decline in AU unemployment rate

  • AUD/JPY surges more than 30 pips after September month Australian (AU) jobs report.
  • Trade/Brexit uncertainties weigh on risk-tone.
  • A lack of major data/events during the Asian session could keep qualitative catalysts at the top.

With a surprise decline in headlines AU unemployment rate pleasing the Australia Dollar (AUD) buyers, AUD/JPY surges to 73.73 by the press time of early Thursday.

Australia’s September month employment report registered lower than expected 15.0K to 14.7K level of Employment Change while the Participation Rate also dwindled to 66.1% from 66.2% prior and expected. However, the disappointment was largely overruled by the unanticipated decline in the Unemployment Rate of 5.2% that slipped beneath a 5.3% forecast and prior.

In a reaction to the data, the AUD/JPY surges more than 30 pips as traders consider it as a sign that avoids further rate cuts from the RBA.

The pair have been struggling off-late amid volatile risk sentiment and mixed clues concerning Australian economy, as conveyed by the early-day speech from the Reserve Bank of Australia’s (RBA) Deputy Governor Guy Debelle.

The US-China political tussle and a lack of major positives from the trade front join Brexit doubts to drag the bond yields lower for the second consecutive day with the United States (US) benchmark slipping below 1.73% by the press time.

Investors will now keep a close eye over the trade/political headlines amid a lack of major data/events up for publishing dung the Asian session.

Technical Analysis

The quote requires a daily closing beyond three-month-old falling trend line at 73.55 now, to target September month high of 74.50 and 50% Fibonacci retracement level of April-August declines, at 75.40. Meanwhile, pair’s daily closing below 50-day Exponential Moving Average (EMA) level of 73.10 can trigger fresh pullback to 23.6% Fibonacci retracement level of 72.53 while multi-month old symmetrical triangle’s support line near 72.15 could challenge bears afterward.

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