The Australian dollar witnessed aggressive buying pressure following the release of stellar Australia’s labour market report, driving AUD/JPY sharply higher above 83.50 levels.
AUD/JPY regains 50-DMA and beyond
The ongoing recovery in AUD/JPY received extra impetus from an upside surprise delivered in the Aus employment data, which came in upbeat across most major indicators, against expectations of a minor correction, especially after two strong reports seen in March and April. The AUD/USD pair leaped to highs near 0.7630 in a knee-jerk reaction to a much-stronger data release.
On the JPY-side of the equation, the USD/JPY pair continues to trade modestly flat amid latest Trump headlines, providing little impetus to the cross. Meanwhile, the USD index attempts correction after hawkish Fed hike-back solid rebound.
Focus now shifts towards a fresh batch of US macro news that will be reported in the NA session, before the release of the BOJ monetary policy statement in the Asian session tomorrow.
Higher side: 83.48 (classic R2/ Fib R3), 84 (psychological levels), 84.24/27 (100 & 200-DMA)
Lower side: 81.92/91 (key support), 81.71 (multi-week low), 81.43 (Apr 19 low)