The Australian economy is experiencing a decline in the housing sector, while mixed employment data helped the currency to sustain its gains against EUR. Australia's jobless rate fell to its eight-year low in February, but the employment change showed significant downturn to 4.6k from the previous figure of 38.3k.
Currently, RBA is concerned with the fall in housing sector. Bank's Assistant Governor Ellis spoke about the impact it had on other sectors of the economy. However, she stated that such a natural disaster as drought also affected the country's economy. Despite these factors, the Australian economy is doing quite well. Besides, the Bank kept its Cash Rate unchanged at 1.75%.
Meanwhile, the household consumption and the income growth were quite volatile.
Today's Private Sector Credit report from Australia showed an increase by 0.3%, while it was expected to remain at 0.2%. Such positive data did help the currency to gain certain momentum. However, it was not enough for a bullish trend.
On the other hand, the Tokyo Core CPI published today stayed at 1.1% as it was expected, the unemployment rate slid to 2.3%, while experts anticipated it to remain 2.5%, the preliminary industrial production data met the expectations of 1.4% from the previous negative value of -3.4%. The retail sales decreased to 0.4% from the previous value of 0.6%, while it was anticipated to advance to 0.9%.
In the meantime, export and import challenges lead to some weakening of Japan's economy, while the Bank of Japan is trying to reach its 2% inflation target. Besides, Japan has to rely on imports for its energy requirements, the core consumer price index is affected as it depends on the oil price. The overall exports of Japan were also influenced by the US-China trade war.
As of the current scenario, volatility of this pair is expected to increase. Comparing the overall economic situations in the countries, JPY seems to have a better support from the statistical data and is likely to firm in the coming days.The material has been provided by InstaForex Company - www.instaforex.com