AUD/JPY jumps 27 pips to 3-week highs on Aussie jobs data

A big beat on the Aussie September headline jobs figure and a drop in the unemployment rate is boding well for the AUD this Thusday.

AUD/JPY jumped 27 pips to a three-week high of 88.88 as the Australian economy added 19.8K jobs in September, beating the estimated rise of 15.0K. Meanwhile, the unemployment rate dropped to 5.5 percent from the August figure of 5.6 percent.

The details reveal a sharp slowdown in the full-time job growth number. Elsewhere, National Bank of Australia (NAB reported slight deterioration in the business confidence in the third quarter (7 in Q3 versus 8 in Q2).

Currently, the markets are cheering the better-than-expected headline jobs data. The Aussie 10-year yield has added two basis points, which adds credence to the uptick in the AUD.

AUD/JPY Technical Levels

A break above 90.00 (psychological level) would open doors for 89.14 (61.8% Fib R of Sep. 21 high - Oct. 10 low). A violation there would expose resistance lined up at 89.68 (Sep. 25 high). On the other hand, failure to hold above 88.78 (50% Fib R of Sep. 21 high - Oct. 10 low) could yield a pull back to 88.33 (5-DMA) and 88.00 (zero levels).