AUD/JPY revisits yearly high near 101.60 after upbeat Australian employment data

• AUD/JPY jumps to near 101.60, following strong Australian labour market data.
• The RBA is unlikely to cut interest rates amid firm employment conditions and accelerating inflationary pressures.
• Japan PM Takaichi advocates for aligning monetary policy with economic goals.

The AUD/JPY pair revisits the yearly high around 101.60 during the late Asian trading session on Thursday. The pair strengthens as the Australian Dollar (AUD) outperforms its peers, following the release of the Australian labour market data for October, published earlier in the day.

The Australian Bureau of Statistics has reported that the economy created a fresh 42.2K jobs, beating estimates of 20K and the prior reading of 12.8K, revised lower from 14.9K. Additionally, the Unemployment Rate also decelerated to 4.3%, larger than expectations of 4.4% and the previous release of 4.5%.

Signs of improving labour market conditions often force traders to pare bets supporting more interest rate cuts by the Reserve Bank of Australia (RBA) in the near term.

Traders have already been doubting over the RBA easing interest rates further as inflationary pressures in Australia are proving to be persistent. In the third quarter of the year, the Consumer Price Index (CPI) grew at a stronger pace of 1.3%, against 0.7% growth seen in the second quarter.

Meanwhile, the Japanese Yen (JPY) trades cautiously as the Bank of Japan (BoJ) is unlikely to tighten its monetary policy in the near term. BoJ hawkish bets have receded as newly elected Japan's Prime Minister (PM) Sanae Takaichi has been favouring fiscal expansionary policies.

On Wednesday, Japan PM Takaichi said after fiscal and economic policy council meeting, "Monetary policy needs to aligned with goals for the economy, stable prices."