Societe Generale Research flags a limited scope for further AUD downside, while maintains its structural bullish JPY bias.
"On the data front, pride of overnight place went to Australia, where employment rose by 41,100, with full-time jobs accounting for 34,500 of that, while August inflation expectations rose from 3.2% to 3.5%. The Australian labour market data are erratic, so one month's decent data shouldn't be afforded too much importance," SocGen notes.
"We still think the AUD fall is overdone, but it's not a hill losing too much sleep on, let alone anything worse. We won't get an AUD bounce until the Chinese economy turns a corner...In the meantime, long yen is a constant theme for us," SocGen adds.