AUD Shrugs Off Disappointing Jobs Data as JPY Weakness Lends Support

Australia's jobs data disappointed investors on Thursday, but the Australian Dollar (AUD) barely budged.

The AUD/JPY cross did dip in reaction to the news, though it lacked follow-through selling. Spot prices currently trade with modest gains around the 112.75 region and have 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.

Rabobank strategists note that market expectations for further Reserve Bank of Australia (RBA) tightening remain muted, with 'market implied policy rates currently priced for just 12 bps of rate hikes on a 3-month view.'