AUD/JPY is looking to scale psychological resistance at 83.00 in a convincing manner.
Australian economy added more jobs than expected in April, while the jobless rate ticked higher.
The bid tone around the AUD strengthened, pushing the AUD/JPY to a session high of 83.08 after the Australian Bureau of Statistics (ABS) data showed the economy added 22.6K jobs in April – which is well above the consensus estimate of 20.K job additions.
The jobs growth was primarily driven by a 32.7K rise in the full-time jobs, which is good news for the Aussie dollar. The seasonally adjusted jobless rate ticked higher to 5.6 percent from 5.5 percent, but that is not necessarily a bad news as the participation rate also increased to 65.6 percent from 65.5 percent.
However, the previous month’s figures were revised lower – the economy shed 0.7K jobs in March as opposed to previously reported 4.9K job additions. The full-time jobs had declined by 25.1K in March vs. the previously reported drop of 19.9K.
The downwardly revised March figures could take the shine off the somewhat upbeat April numbers and limit upside in the AUD/JPY pair.
As of writing, the pair is trading at 83.07 and looks set to challenge the April high of 84.08 after having created a bullish outside day candle on Wednesday. The ascending 5-day MA and 10-day MA also favor the bulls.
Acceptance above 84.08 would expose the 100-day MA, currently lined up at 84.29. On the downside, a break below 82.18 (previous day’s low) would abort the bullish view and could yield a deeper pullback to 81.13 (May 9 low).
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