The Australian dollar slipped against the Japanese yen on Thursday after weaker-than-expected jobs data, with the cross hovering near 113.90 as traders turned their attention to China’s first-quarter growth figures that could shape the next leg for the currency.
Australian jobs growth slows, unemployment steady
The latest figures from the Australian Bureau of Statistics showed the economy added 17,900 jobs in March, missing expectations for 20,000 and marking a sharp slowdown from February’s revised gain of 48,900 positions.
Despite the softer hiring, the unemployment rate held at 4.3%, in line with forecasts, suggesting the labor market is cooling but not yet deteriorating. The monthly report, released on a seasonally adjusted basis, is closely watched as stronger-than-expected employment is usually associated with firmer economic momentum and support for the local currency, while weaker outcomes tend to weigh on it.
Inflation expectations jump, pressure builds on rba
Australian consumer inflation expectations climbed to 5.9% in April from 5.2% in March, highlighting mounting concerns over rising living costs, particularly from higher energy prices.
Economists noted that the jump in expectations is likely to feature prominently in upcoming policy discussions at the Reserve Bank of Australia, as persistent price pressures could complicate any move toward easier monetary settings.
China gdp beats forecasts, offers external support
Separate data showed China’s economy expanded 5.0% in the first quarter of 2026, beating consensus forecasts of 4.8%.
Given China is Australia’s largest trading partner, the stronger-than-expected gdp print provides a constructive backdrop for Australian export demand and could offer some offsetting support to the Australian dollar after the softer labor numbers.
Risk sentiment mixed on Middle East developments
Broader risk appetite remained fragile amid conflicting signals from the Middle East. A statement from former U.S. President Donald Trump suggested the regional conflict was moving toward resolution, with reports pointing to talks on extending a ceasefire by two weeks.
However, Washington’s confirmation of plans to deploy an additional 10,000 troops to the region undercut the earlier optimism, leaving traders cautious toward risk-sensitive currencies such as the Australian dollar.
Yen firms on intervention speculation
The Japanese yen gained ground as speculation mounted that authorities in Tokyo could intervene to stabilize the currency after a period of heightened volatility since early April.
Japan’s Finance Minister, Shunichi Suzuki, recently met with the U.S. Treasury Secretary and agreed to strengthen communication on currency developments, a move often seen as laying the groundwork for possible joint or coordinated action.
With the yen firming on intervention chatter and the Australian dollar under pressure from soft employment data, traders remained focused on China’s growth outlook and any signals from central banks that could shift the balance in the aud/jpy pair in the near term.
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