AUD/JPY renews four-year high to 87.00 on strong Aussie jobs report, firmer sentiment

• AUD/JPY prints three-day uptrend, picks up bids to refresh multi-day top.
• Australia Employment Change rallies by 77.4K, Unemployment Rate drops to 4.0% in February.
• Global markets remain hopeful of peace between Russia and Ukraine, Chinese headlines also contribute to the risk-on mood.
• Risk catalysts remain in the driver’s seat with eyes on 2018 peak.

AUD/JPY cheers upbeat Australia employment data by rising to the fresh high since February 2018, taking the bids around 87.00 by the press time of Thursday’s Asian session. Also contributing to the pair’s upside momentum is the risk-on mood that weighs on the Japanese yen’s safe-haven demand.

Australia Unemployment Rate dropped to 4.0%, below 4.1% expected and 4.2% prior, whereas the Employment Change rose past 37K market forecast and 12.9K previous readings to 77.4K. Further, the Participation Rate also crossed the 66.2% prior and 66.3% consensus to 66.4% in February.

Read: Australian Employment data is solid and offering support to AUD

On the other hand, the US stock futures and Asia-Pacific equities portray brighter sentiment while the US 10-year Treasury yields retreat from the highest levels in 2019 to 2.147% at the latest.

Although Kyiv’s rejection of proposed neutrality in the 15-point peace plan and the International Court of Justice’s order to Russia to suspend the invasion of Ukraine challenge sentiment of late, the continuation of the peace talks and recently easy tone of Moscow keeps markets hopeful. Elsewhere, the receding COVID-19 woes in China, due to Wednesday’s easing in daily infections, join China Vice Premier Liu He’s push for the measures to boost the economy in the first quarter (Q1) to keep the risk-appetite firmer.

It’s worth noting that Japan’s softer-than-expected YoY growth in Machinery Orders to 5.1% also propel the AUD/JPY prices.

That said, headlines concerning Russia-Ukraine and China may entertain AUD/JPY buyers looking forward.

Technical analysis

AUD/JPY remains on the way to challenge the year 2018 high of 89.07 unless providing a daily close below a 10-month-old resistance-turned-support near 86.65.