AUD/JPY remains below 114.00 following Australia’s March labor data, China’s Q1 GDP eyed

AUD/JPY stays pressured after Australia’s March labor data release.
Australia’s Employment Change arrived at 17.9K in March, missing the 20.0K forecast.
The Japanese Yen strengthens on speculation that authorities may intervene to support the domestic currency.

Akhtar Faruqui FXStreet

AUD/JPY depreciates after three days of gains, trading around 113.90 during the Asian hours on Thursday. The currency cross remains under pressure following the release of Australia’s March labor data, with traders now turning their attention to China’s first-quarter Gross Domestic Product figures, due later in the day, given China’s economic change could impact the AUD as a key trading partner for Australia.

Australia’s Unemployment Rate steadied at 4.3% in March, coming in line with the market consensus. Furthermore, Employment Change fell to 17.9K in March from 48.9K in February, coming below the consensus forecast of 20K.

Meanwhile, Australia’s Consumer Inflation Expectations climbed to 5.9% in April from 5.2% in March, with the notable increase largely reflecting the recent surge in oil prices.

The downside in the AUD/JPY cross may be limited as the Australian Dollar (AUD) finds support from improving market sentiment, fueled by expectations of a possible de-escalation in the Middle East conflict.

US President Donald Trump remarked that the war was “close to over.” Reports, including those from Bloomberg, pointed to speculation surrounding a potential two-week extension of a ceasefire, although Trump downplayed the need for such an extension, citing ongoing diplomatic efforts aimed at ending the conflict. However, uncertainty persists after Washington announced plans to deploy an additional 10,000 troops to the region.

Moreover, the AUD/JPY cross struggles as the Japanese Yen (JPY) strengthens on growing speculation that Japanese authorities may intervene to curb weakness in the domestic currency.

Economic Indicator

Employment Change s.a.

The Employment Change released by the Australian Bureau of Statistics is a measure of the change in the number of employed people in Australia. The statistic is adjusted to remove the influence of seasonal trends. Generally speaking, a rise in Employment Change has positive implications for consumer spending, stimulates economic growth, and is bullish for the Australian Dollar (AUD). A low reading, on the other hand, is seen as bearish.

AUD/USD weakens to two-week lows near 0.6960

AUD/USD clinches its second consecutive daily pullback as market participants continue to assess the RBA’s rate hike earlier in the day. Indeed, the pair slipped back toward the 0.6960 zone, or multi-day troughs, following the less-hawkish-than-expected message from the RBA after it hiked the OCR by 25 bps, as widely anticipated.

USD/JPY fails near 159.00 amid weak USD, intervention risks

USD/JPY edges lower during Tuesday’s Asian session, reversing part of the previous day's gains to 158.00 as the US Dollar remains depressed amid hopes for Iran diplomacy and ahead of US midterm elections. Meanwhile, intervention risks support the Japanese Yen, though the uncertainty over the timing of the next BoJ rate hike caps gains. This keeps the pair confined within a familiar range and warrants caution before placing directional bets.