AUD/JPY falls to near 94.00 following disappointing Australia’s Employment Change

• AUD/JPY loses ground as Australia’s Employment Change declined by 52.8K in February, missing the expected 30.0K increase.
• The PBOC maintained its one- and five-year Loan Prime Rates (LPRs) at 3.10% and 3.60%, respectively.
• The Japanese Yen strengthens as traders continue to factor in the possibility of a BoJ rate hike in 2025.

AUD/JPY continues its losing streak for the third consecutive session, trading around 94.00 during Asian hours on Thursday. The currency cross weakens as the Australian Dollar (AUD) faces downward pressure following disappointing domestic employment data.

Australia’s Employment Change fell by 52.8K in February, a sharp decline from the revised 44K increase in January and well below the expected 30.0K rise. However, the seasonally adjusted Unemployment Rate remained steady at 4.1%, in line with market expectations.

Meanwhile, in China, a key trading partner for Australia, the People’s Bank of China (PBOC) kept its Loan Prime Rates (LPRs) unchanged on Thursday, maintaining the one-year rate at 3.10% and the five-year rate at 3.60%. Developments in the Chinese economy often influence the China-proxy AUD.

The Japanese Yen (JPY) strengthens, contributing to the decline in the AUD/JPY cross, as traders continue to price in the possibility of a Bank of Japan (BoJ) rate hike in 2025. On Wednesday, the BoJ maintained its short-term interest rate target within the 0.40%-0.50% range.

The BoJ’s Monetary Policy Statement indicated that Japan's economy is experiencing moderate recovery, despite some lingering weaknesses. Consumption gradually increases, and inflation expectations are rising at a measured pace. In a post-meeting press conference, BoJ Governor Kazuo Ueda emphasized that the central bank will adjust its policy to ensure the sustainable and stable achievement of its price targets.