Credit Agricole discusses AUD/JPY outlook and sees a scope for further gains on the back of the scheduled release of Australia's jobs report for the month of June.
"Crosses such as AUD/JPY continue to trade close to recent highs. Even though risk sentiment should stay carry pairs’ predominant driver, the shortterm focus is likely to turn back to fundamentals. This is due to the release of Australian June labour data on Thursday morning.
With speculative oriented investors continuing to run a sizeable AUD short positioning, upside risk from position squaring seems likely should incoming data make a case for it. Accordingly, we believe the AUD has further room to outperform low funding currencies such as the JPY,"CACIB argues.