AUD/JPY Holds Steady Despite Dismal Jobs Data
The release of dismal Australian jobs data had little impact on the AUD/JPY cross, which held above its weekly low despite the lackluster report. The spot price currently trades around 112.75, having snapped a two-day losing streak.
The Australian Bureau of Statistics reported that the Unemployment Rate climbed to 4.5% in July from 4.4% in the previous month, while the number of employed people fell by 15.8K during the reported month, down from a rise of 76.3K in June.
Strategists at Rabobank note that market expectations for further RBA tightening remain muted, with 'market implied policy rates currently priced for just 12 bps of rate hikes on a 3-month view.' They highlight broader market commentary focused on headwinds including weaker Chinese demand for Australian commodities and a softer domestic economic climate.
The Japanese Yen came under selling pressure in reaction to unimpressive domestic trade data, showing a deficit of ¥634.5 billion in July, but concerns about Japan's worsening fiscal condition and the interest rate gap between Japan and other major economies continue to undermine the JPY.