AUD/JPY remains below 114.00 following Australia’s March labor data, China’s Q1 GDP eyed

AUD/JPY depreciates after three days of gains, trading around 113.90 during the Asian hours on Thursday. The currency cross remains under pressure following the release of Australia’s March labor data, with traders now turning their attention to China’s first-quarter Gross Domestic Product figures, due later in the day, given China’s economic change could impact the AUD as a key trading partner for Australia.

Australia’s Unemployment Rate steadied at 4.3% in March, coming in line with the market consensus. Furthermore, Employment Change fell to 17.9K in March from 48.9K in February, coming below the consensus forecast of 20K.

Meanwhile, Australia’s Consumer Inflation Expectations climbed to 5.9% in April from 5.2% in March, with the notable increase largely reflecting the recent surge in oil prices.

The downside in the AUD/JPY cross may be limited as the Australian Dollar (AUD) finds support from improving market sentiment, fueled by expectations of a possible de-escalation in the Middle East conflict.

US President Donald Trump remarked that the war was “close to over.” Reports, including those from Bloomberg, pointed to speculation surrounding a potential two-week extension of a ceasefire, although Trump downplayed the need for such an extension, citing ongoing diplomatic efforts aimed at ending the conflict. However, uncertainty persists after Washington announced plans to deploy an additional 10,000 troops to the region.

Moreover, the AUD/JPY cross struggles as the Japanese Yen (JPY) strengthens on growing speculation that Japanese authorities may intervene to curb weakness in the domestic currency.