AUD/JPY stages a solid comeback on upbeat Aus jobs

The AUD/JPY cross found fresh bids near 82.10 levels and rallied hard following the release of upbeat Australian labor market report, sending the rate back towards 82.75 levels. However, the spike quickly lost pace amid persisting risk-off trades.

AUD/JPY: 83 handle back on sight?

The cross staged a solid rebound as strong April Australian employment data offered the much needed-respite to the AUD bulls. The Aus jobs data came in upbeat across almost all indicators and hence, reduced RBA’s concerns over a slack in the labor market.

Australian April jobs solid: Jobless rate ticks down to 5.7%, beats estimate

However, further upside looks dicey amid wide-spread risk-aversion, fuelled by the Trump controversy, with markets losing faith in the US government. Hence, demand for risk assets such as the AUD, equities and copper prices remains undermined.

Meanwhile, downbeat Aus inflation expectations data and rising China home prices numbers had limited impact on the cross, while a minor-recovery seen In USD/JPY further added to renewed upside in AUD/JPY.

Focus now shifts towards the US macro news, including the jobless claims and Philly Fed manufacturing index data for further momentum.

Technical Levels

Higher side: 83 (round number), 83.41/50 (5-DMA/ psychological levels), 83.78 (200-DMA)

Lower side: 82.12 (daily low), 81.48/43 (April 20 & 19 low), 81 (key support)