AUD/JPY Holds Gains Despite Weaker Australian Data
The Australian Dollar (AUD) versus Japanese Yen (JPY) currency pair has shown resilience in the face of weaker-than-expected labor market and inflation data from Australia. Despite initial selling pressure, the pair did not break below recent lows, with technical strength outweighing soft economic data.
Market participants are closely watching labor market and inflation data as policy expectations hinge on these releases. Weaker than expected Q2 CPI inflation figures in Australia led to reduced expectations for an imminent interest rate hike by the Reserve Bank of Australia (RBA).
AUD/JPY is trading above its major moving averages, with a bullish alignment across key indicators. The Ichimoku Kijun line at ¥111.98 acts as underlying support, while the bullish alignment between the MA-50 and MA-200 adds strength.