- Aussie dollar feels the heat of drop in full-time jobs.
- However, technicals favor corrective rally.
AUD/JPY fell to a session low of 84.27 after the Australia Bureau of Statistics reported a big drop in the full-time jobs in January.
The headline figure showed the economy added 16,000 jobs in January, beating the forecast of 15,000, but well below (downwardly revised) previous month's print of 33,500. More importantly, the full-time jobs fell by 49,800. also, previous month's figure was revised lower to 12,700 from 15,100.
Consequently, the Aussie dollar has lost altitude against most majors. That said, the AUD/JPY cross is still holding well above the previous day's low of 83.32. As of writing, the currency pair is trading at 84.54 levels.
The previous day's "long-tailed" doji candle indicates the sell-off from the Jan. 23 high of 89.07 may have run out of steam. Thus, short-term technicals favor corrective rally in AUD/JPY cross.
AUD/JPY Technical Levels
A move above 84.83 (previous day's low) would add credence to previous day's "long-tailed" doji candle and could yield stronger gain towards 85.43 (10-day MA) and 85.52 (38.2% Fib R of the recent sell-off).
On the other hand, a close below 84.28 (Feb. 13 low) would shift attention to 84.01 (Feb. 9 low) and 83.32 (previous day's low).
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