AUD/JPY rose to 97.45 in Tuesday trading after Australia reported 38,500 new April jobs, far above the 20,000 forecast.
Australia’s unemployment rate held at 3.9% instead of rising to 4.0%, while participation edged up to 66.8%, reinforcing expectations the RBA can keep policy restrictive for longer.
Japan’s -0.1% policy rate kept the yen under pressure, widening the yield gap that has supported AUD demand for months.
The pair is now testing 97.50 resistance, with a break potentially opening 98.00, though China growth worries and any risk-off turn could still support the safe-haven yen.