AUD/JPY: Mildly bid near 10-day MA despite the drop in Japan's jobless rate
- AUD/JPY is trading flat-to-positive despite the upbeat Japanese data.
- A better-than-expected Australian housing data is needed to lift AUD/JPY above the 21-day MA.
An upbeat Japanese labor data has failed to put a bid under the Japanese Yen, leaving the AUD/JPY pair mildly bid near the 10-day moving average of 71.76.
The Japanese government data released at 23:50 GMT on Thursday showed Japan’s jobless rate fell in July to 2.2%, as opposed to an expected rise to 2.4% from the preceding month's 2.3%. Further, industrial production rose 1.3% in July, also bettering the estimate of 0.3% by a big margin.
Even so, the JPY is not impressed, possibly due to the drop in the Tokyo Consumer Price Index's annualized growth rate to 0.6% in August from 0.9%. The Bank of Japan (BOJ) remains miles away from its 2% inflation target, although many observers, including Bank of Japan's Suzuki, believe that cutting rates further into the negative territory might do more harm.
Focus on Aussie data
Australian data due for release at 01:30 GMT is expected to show building permits' growth stalled in July, having dropped 1.2% in June. A better-than-expected data could yield a move higher in the AUD/JPY.
A convincing break above the 21-day moving average, currently at 7.82, could invite stronger buying pressure.
Pivot points
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
