AUD/JPY is trading close to its weekly 200-MA level of 88.45 ahead of the Aussie jobs data, which could show employment in August increased by 15.0K.
The jobless rate is expected to hold steady at 5.6%. The participation rate is expected to be unchanged at 65.1%. A strong jobs data is generally seen as positive (or bullish) for the AUD, while a low reading is seen as negative (or bearish).
However, the headline figure alone could be misleading. Moreover, AUD bulls would want to see a strong jump in the full time jobs. Traders need to be cautious as strong data may boost Aussie above the RBA's likely threshold.
Following the Aussie data, attention will shift to Chinese figures, in search of clues for future economic developments.
AUD/JPY Technical Levels
At the time of writing, the cross traded at 88.25 levels. A break above 88.45 [4-hour 200-MA] would lift the AUD/JPY cross to 90.00 [psychological levels], above which a major hurdle is seen directly at 90.72 [Nov 2015 high]. On the downside, breach of support at 88.00 [zero levels] could yield a pull back to 87.59 [10-DMA] and 87.43 [50-DMA].
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