AUD/JPY clocks 7-week high on the stellar Aussie jobs report

To say that the Aussie labor market is on fire would be an understatement. The August report released today bettered estimates by a big margin, the result being a sharp rise in the Australia 10-year government bond yield and a strong Aussie dollar.

Following the release of the strong data, the AUD/JPY took out the weekly 200-MA hurdle of 88.45 and jumped to a 7-week high of 88.74. The 10-year Aussie government bond yield rose to 2.743%, the highest level since August 31.

The other side of the story, i.e. the Japanese Yen remains on the back foot, courtesy of the risk-on action across the globe. Thus, the AUD/JPY cross could extend the rally to fresh multi-week highs, especially if the China industrial production and retail sales number due at 2:00 GMT beat estimates.

Looking ahead, potential jawboning from the RBA or the resurgence of geopolitical tensions are the only two factors that could derail the rally in the AUD/JPY cross.

AUD/JPY Technical Levels

The immediate resistance is seen at 89.00 [zero levels], which, if breached would open doors for 89.42 [July 22 high]. The next major hurdle is the psychological level of 90.00. On the downside, failure to hold above 88.45 [weekly 200-MA] would open doors for a technical correction to 88.00 [zero figue] and 87.77 [1-hour 100-MA].

 

 

 

 

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 securities. 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 Forex 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.