AUD/JPY drops 28 pips as Aussie Unemployment Rate rises more than expected
- Aussie dollar offered on above-forecast Australian jobless rate reading.
- Full-Time jobs growth picked up the pace alongside an uptick in the Participation Rate.
- Losses could be reversed later as equities are flashing green.
The AUD/JPY fell by 28 pips to hit a session low of 74.10 in a knee jerk reaction to the above-forecast Aussie jobless rate.
The unemployment rate rose to 5.3% in January, beating the estimated rise to 5.2% from 5.1% as the pace of job creation slowed. The economy added 13.5K jobs in January versus December's 28.9K reading.
The positive takeaway is that the Full-Time jobs rose by 46.2K, having dropped by 0.3K in December. Also, the participation rate jumped to 66.1% from 66%, meaning the
jobless rate has risen for the right reasons.
So far, however, the market has not paid attention to the positives, leaving the AUD/JPY pair into the red.
At press time, the JPY cross is trading at 74.25. The buyers may return to the market, lifting the pair above 74.40 on sins of risk reset in the financial markets. The US
stocks ticked higher on Wednesday with the S&P 500 and Nasdaq closing at record highs Beijing will deliver fresh stimulus to curb the coronavirus impact, which is showing signs of slowing in China.