AUD/JPY dumped on a terrible Australian jobs report that opens the door for further rate cuts from the RBA, potentially before the year is out.
AUD/JPY went from a score on the 80 handle to test through 79.70 to the downside as soon as the data was released. The Aussie is now testing the 0.77 handle with a low of 0.7696 so far as traders digest the full report. This move is in stark contrast to that of recent progress in the cross in risk-on markets and could leave the pair capped for the time being. The RBA put a fair bit of emphasis on jobs in the recent minutes while a concern is the quality of the jobs available, (underemployment). However, this report in fulltime jobs was a very big miss and underpins the potential need for the RBA to step in while policy is not achieving their fundamental economic goals.
Australia's Sept employment report disappoints, major decline in full time jobs
Meanwhile, current price is 79.77, with resistance ahead at 79.88 (Daily Open), 79.93 (Yesterday's High), 80.03 (Daily High), 80.06 (Daily Classic R1) and 80.18 (Weekly Classic R1).
Next support to the downside can be found at 79.69 (Daily Low), 79.68 (Hourly 20 EMA), 79.62 (Monthly High), 79.62 (Weekly High) and 79.60 (Daily Classic PP).