Yesterday, Australia’s September employment data, announced during Tokyo trading hours, showed stronger-than-expected job growth. The unemployment rate also fell to 4.1% from 4.2% in the previous month, indicating a strong labor market. As a result, the market expects the Reserve Bank of Australia (RBA) to take an even more aggressive stance on interest rates, leading to a rise in the Australian dollar.
In addition, with European and U.S. stock markets performing well, there was increased risk-on sentiment, which led to more selling of the Japanese yen. As a result, the AUD/JPY exchange rate rose to 100.68 yen.
While many other major countries are lowering interest rates, the RBA is the only central bank maintaining a hawkish (strict) stance. Furthermore, due to China’s additional economic stimulus measures and rising global stock prices, the Australian dollar is expected to remain strong for a while.
However, it’s important to stay cautious of unexpected events such as geopolitical risks or Japan intervening to weaken the yen.
AUD/JPY forecast range: 101.00 yen to 99.80 yen
Please note that the above information does not guarantee profits, so make your own decisions when trading.