Australian Dollar to Japanese Yen (AUD/JPY) Exchange Rate Declines After Unemployment Data
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The Yen experienced a slip in the currency market yesterday following the decision to invest more finances into aggressive bond-buying within Japan, enhancing the amount of domestic stocks held above the 20% threshold.
Expert in the field Takashi Oba commented on Thursday’s events stating: ‘GPIF (Government Pension Investment Fund) receives a lot of attention from overseas investors as well, and it appears some players bought back in light of the news after selling earlier.’
Furthermore a percentage of currencies are trading lower against the highly popular US Dollar (USD).
HSBC representative Daragh Maher commented: ‘It is that news on the GPIF that has moved the [US] Dollar/Yen this morning.’
The Australian Dollar however has also plummeted against other majors after unemployment figures for Australia reached an unexpected 12-year high on Thursday.
Australia published their current Unemployment Rate figures at an unfavourable 6.4%, usurping economists’ forecasts to remain at 6.0%. Furthermore to enhance the ‘Aussie’s’ downward decent, the Australian Employment Change figures failed to reach the 13.2K prediction economists expected, instead falling into the negative at -0.3K.
With a surprising data release such as this, the ‘Aussie’ looks set to continue on its downward and weakened trajectory.
Economist Michael Blythe commented: ‘It’s been a long time since Australia has had that kind of number. Most other countries have employment figures trending down, but our number is edging higher. This is quite a significant divergence from our trend.’
Employment minister for Australia, Eric Abetz, stated: ‘In anybody’s language 6.4% is a very high rate of unemployment, and can I say it’s not only an economic figure – it is a social figure. In that 6.4% are literally hundreds of thousands of our fellow Australians who are without a job.’
An expert in the field Joshua Mahony commented on the recent figures: ‘It [unemployment rate] is clearly a stark eminder of the impact weakness in China and major export markets have had upon Australian jobs especially when coupled with depressed commodity prices. The impact to the markets has been stark, sending the Australian Dollar lower across the board, yet the impact to monetary policy I believe will be very little in the immediate future.’
Friday will see the release of Australian Home Loans figures on Friday, whilst Japan will publish Bank Lending, Housing Loans, and the Japanese Trade Balance figures.
Bankruptcies, the Japanese Monetary Base Target and the Bank of Japan Monetary Policy statement will further be released today which could help the Yen attain some of the ground its lost in the currency market.