AUD/JPY oscillates around 92.50 as investors await Aussie Employment data

• AUD/JPY juggles around 92.50 after a mild correction from near 92.60 ahead of aussie labor market data.
• Aussie Unemployment Rate may slip to 3.8% from the prior release of 3.9%.
• BOJ’s ultra-loose monetary policy will keep the yen bulls on the tenterhooks.

The AUD/JPY pair is displaying back-and-forth moves in a narrow range of 92.35-92.52 in the Asian session after a mild correction from a tad above 92.60. The risk barometer has shown a vulnerable performance this week after failing to sustain above the critical hurdle of 93.50. The asset is expected to display volatile moves as investors are shifting their focus on the aussie employment data, which is due on Thursday.

As per the market consensus, the Australian Bureau of Statistics will report the Employment Change data at 25k, extremely lower than the prior release of 60.6k. The economy has not been able to generate decent employment opportunities, which is necessary to support the upcoming policy tightening measures by the Reserve Bank of Australia (RBA).

It is worth noting that the RBA maintained its status-quo in the first week of July and elevated its Official Cash Rate (OCR) by 50 basis points (bps) to 1.35%. For further elevation in the interest rates, support from the labor market and upbeat growth prospects is highly required. Also, the Unemployment Rate may slip to 3.8% from the prior print of 3.7%.

On the Tokyo front, the continuation of the ultra-loose monetary policy by the Bank of Japan (BOJ) will keep the yen bulls on the tenterhooks. The BOJ is committed to doing more monetary easing as the economy is still finding ways to elevate its inflation on a broader basis. On Thursday, Japan’s Ministry of Economy, Trade, and Industry will release the Industrial production data, which is seen as stable at -2.8% and -7.2% on an annual and a monthly basis respectively.