AUD/JPY gains ground after recovering daily losses, trading around 114.30 during the Asian hour on Thursday. The currency cross receives support as the Australian Dollar (AUD) gains ground following the release of improved Australian employment data.
The Australian Bureau of Statistics (ABS) reported on Thursday that the Unemployment Rate stayed at 4.4% in June. The figure came in line with the market consensus of 4.4%. Furthermore, Employment Change arrived at 76.3K in June from a rise of 44K in May (revised from 40.3K), compared with the consensus forecast of a 15K increase.
The AUD/JPY cross faces downward pressure as the Japanese Yen (JPY) gains strength. Rising energy prices are heightening inflation in Japan, fueling expectations that the Bank of Japan (BoJ) could accelerate its rate hikes.
Reports indicate BoJ officials are open to faster tightening than markets anticipate, while renewed intervention risks also support the Yen. Finance Minister Satsuki Katayama warned that authorities are prepared to take decisive action against excessive currency weakness. Meanwhile, investors are closely watching Friday’s release of Japan’s June consumer inflation data for further direction on policy trajectory.
Economic Indicator
Unemployment Rate s.a.
The Unemployment Rate, released by the Australian Bureau of Statistics, is the number of unemployed workers divided by the total civilian labor force, expressed as a percentage. If the rate increases, it indicates a lack of expansion within the Australian labor market and a weakness within the Australian economy. A decrease in the figure is seen as bullish for the Australian Dollar (AUD), while an increase is seen as bearish.
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