AUD/JPY eases from intraday top to attack 82.00 on mixed Aussie employment figures
- AUD/JPY steps back from the day’s high, fades the earlier recovery moves from 81.76.
- Australia’s Employment Change dropped below forecast, Unemployment Rate eased to eight-month low in January.
- Risk catalysts trade mixed amid same old stories waiting for China’s reaction.
- Equities mark mild gains, US Treasury yields extend pullback.
AUD/JPY witnesses a pullback from the day’s high of 82.19 to currently around 82.00 during Thursday’s Asian session. The aussie pair recently reacted to the Australian employment figures for January amid mixed risk catalysts.
Although an eight-month low Unemployment Rate initially pleased Aussie buyers, weakness in the Employment Change to 29.1K, versus 40K forecast, as well as a weaker-than-expected Participation Rate of 66.1% confirmed the RBA’s worries for the job sector.
Read: Australia Jan Employment +29.1k s/adj vs Reuters poll: +40.0k, big miss, AUD unnerved
Not only the sluggish data but market sentiment also challenges the AUD/JPY upside. In doing so, the US 10-year Treasury yields drop for the second day to 1.0264% whereas stocks in Asia-Pacific and S&P 500 Futures remain mildly bid by press time.
Behind the moves could be the trader’s cautious sentiment ahead of China’s return after the week-long Lunar New Year holidays. However, optimism concerning the US covid relief stimulus and vaccinations seem to favor the bulls. Also on the risk-positive side could be Japan’s start of vaccinations and removal/easing of the virus-led lockdowns in Australia and New Zealand.
It’s worth mentioning that the recent reduction in the foreign investments in Japan’s stocks and bonds, as per the latest data for the week ended on February 12, also helps the AUD/JPY to remain firm.
Looking forward, the soft data joined the latest downbeat commentary from the RBA policymakers to suggest a bearish bias for the AUD/JPY. However, China’s reaction to the fresh risk catalysts and Japan’s covid infection updates will be eyed closely for fresh directions.
Technical analysis
A downside break of one-week-old rising support line, bearish MACD favor AUD/JPY sellers targeting an ascending support line from February 02, currently around 81.50. Meanwhile, the support-turned-resistance line precedes the two-day-old hurdle, near 82.20 and 82.25 in that order, to challenge the recovery moves.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
