Australian employment surged by 76.3K in June, beating forecasts and supporting the AUD against the JPY amid BoJ tightening expectations.
The AUD/JPY pair climbed to around 114.30 in Asian trading on Thursday, recovering earlier losses after Australia’s June employment data exceeded expectations. The economy added 76.3K jobs, far surpassing the 15K forecast and May’s revised 44K gain, while the unemployment rate held steady at 4.4%, matching consensus.
The strong labor market data bolstered the Australian Dollar, though the cross faced headwinds from a firmer Japanese Yen. Rising energy prices in Japan have stoked inflation concerns, fueling speculation that the Bank of Japan may accelerate rate hikes. Reports suggest BoJ officials are open to faster tightening, with Finance Minister Satsuki Katayama warning of potential intervention against excessive currency weakness.
Investors are now eyeing Japan’s June consumer inflation data, due Friday, for further clues on the BoJ’s policy trajectory. The interplay between robust Australian employment and shifting BoJ expectations continues to drive volatility in the AUD/JPY pair.