AUD/JPY loses ground as higher Aussie unemployment data bolsters the dovish sentiment surrounding RBA’s policy stance. The Aussie Unemployment Rate rose to 4.1%, marking the highest jobless rate since January. The lower Japanese GDP in Q1 has weakened the Japanese Yen advance. The AUD/JPY cross decline is attributed to the mixed employment data from Australia released on Thursday.
On the Japanese front, the lower-than-expected Japan’s Gross Domestic Product in the first quarter has weakened the advance of the Japanese Yen and limited the decline of the AUD/JPY cross. The preliminary Japanese Gross Domestic Product contracted 0.5% QoQ in the first quarter, compared to the previous downwardly revised stagnation. The market expectation was a 0.4% contraction. The Annualized GDP fell by 2.0%, surpassing the forecasted decline of 1.5%.