AUD/JPY slumped to fresh 19-week low after Australian employment data


  • Increase in unemployment opens the door for the RBA’s rate cut.
  • Upbeat Aussie employment change limits the downside.

AUD/JPY presently trades near 75.55 after it dropped 40 pips to mark the fresh low since January 04 during early Thursday.

Australia’s employment data raised the hopes of a rate cut from the RBA after the headline unemployment rate rose past 5.1% expectations and 5.0% prior to 5.2%. The same dimmed better that 14.0K forecast and 25.7K previous readout of employment change that rose to 28.4K. Further, the participation rate grew 65.8% from 65.7% expected and earlier. 

The Trump administration finally laid grounds to ban China’s Huawei from the US telecom sector citing national security threat. Also dimming the risk sentiment was the US-Iran tension.

Despite witnessing a pullback during late-Wednesday, market risk-tone remained heavy at the start of the day as headlines from the US haven’t been positive to trade sentiment. Barometer of global risk, 10-year treasury yield for the US government bond, slipped nearly 2 basis points to 2.36% by the press time.

While Aussie employment data have already been released, the Australian Dollar (AUD) traders may now concentrate on the speech by the Reserve Bank of Australia’s (RBA) Assistant Governor Michele Bullock that is up in next few hours.

Technical Analysis

January 04 low of 75.20 gains immediate attention of sellers as a break of which can open the doors for the pair’s slump to July 2016 lows near 74.55 and June 2016 bottom around 72.40. Though, 75.00 may become an intermediate halt to watch during the south-run.

Meanwhile, 76.30 and a month-old descending trend-line at 76.75 seem nearby resistances that question buyers targeting 77.45/50 resistance-area comprising multiple lows marked during January and March.

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 assets. 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 Open Markets 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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: Trapped in a bull flag on 4H chart

EUR/USD's pullback from Oct.21's high of 1.1179 to 1.1106 has taken the shape of a bull flag on the 4-hour chart. A bull flag represents a pause which usually refreshes higher. A breakout would open the doors for 1.1320. A 4-hour close above 1.1134 would confirm a flag breakout.

EUR/USD News

GBP/USD: Modestly changed to 1.2915 amid fears of UK election

Despite mounting speculations of a general election in the UK, GBP/USD clings to 1.2915 during early Thursday morning in Asia. No major British data highlights the US economic calendar, trade/Brexit news as the key catalysts.

GBP/USD News

USD/JPY declines to 108.60 amid fresh risk aversion, all eyes on the ECB

With the recent uncertainty surrounding the UK’s politics crossing wires, USD/JPY steps back from the previous rise to 108.60 as Tokyo opens for Thursday’s trading session.

USD/JPY News

Gold climbs higher toward $1,500 on risk-aversion

The XAU/USD pair gained traction on Wednesday and rose toward the upper-limit of its two-week-old range near the critical $1,500 handle supported by risk-off flows.

Gold News

If you are a "Hodler" here is where you could find support in Bitcoin

Today the price of Bitcoin fell and the price is now headed toward the 7,310.00 support used as a resistance zone on the week of the 3rd September 2018.

Read more

Forex MAJORS

Cryptocurrencies

Signatures