AUD/JPY cheers drop in Aussie jobless rate, jumps 40 pips
- AUD/JPY jumps to a session high of 85.95 as the Aussie jobless rate fell to 5.4 percent.
- Gains capped to some extent by a miss on the headline job growth figure.
AUD/JPY jumped more than 40 pips to 85.95 after the data released in Australia showed a drop in the unemployment rate.
As of writing, the currency pair is trading at 85.85; up 0.23 percent on the day. The gains are being capped as job market showed signs of cooling in October. The economy added only 3.7K jobs in October, missing the estimated figure of 17.5K.
Also helping the cross today is the slight weakness in the Japanese Yen. Still, caution is advised as the 10-year treasury yield topped out at 2.4 percent and fell more than 5 basis points to 2.32 percent yesterday. More importantly, the yield is showing no signs of life in Asia, thus Yen could quickly reverse course.
AUD/JPY Technical Levels
A break above 86.02 (200-day MA) would open up upside towards the downward sloping 5-day MA level of 86.31 and 86.56 (Sept. 6 low). On the other hand, a failure to hold above the session low of 85.47 would expose 85.00 (zero levels) and 84.81 (Jun. 16 high).