The upside of the currency cross could be limited as the JPY receives support from the hawkish BoJ.
AUD/JPY continues its winning for the fourth successive day, trading around 97.10 during the early European hours. The Australian Dollar (AUD) received support following the labor market report released on Thursday.
Australian Employment Change rose to 47.5K in August, down from 58.2K in July but significantly above the consensus forecast of 25.0K. The Unemployment Rate held steady at 4.2% in August, consistent with both expectations and the previous month’s figure, according to data released by the Australian Bureau of Statistics (ABS).
The US Federal Reserve’s (Fed) 50 basis point interest rate cut on Wednesday may have improved market confidence and supported risk-sensitive currencies like the Australian Dollar. However, comments from Fed Chair Jerome Powell tempered optimism, preventing a stronger risk-on sentiment in the markets.
Fed’s Chair Powell stated in the post-meeting press conference, that the Fed is not in a hurry to ease policy and emphasized that half-percentage point rate cuts are not the "new pace." Additionally, Fed policymakers raised their long-term projection for the federal funds rate from 2.8% to 2.9%.
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