AUDJPY fails to surpass 94.00 in advance of Australian Employment data

In the early Tokyo session, the AUDJPY pair faces headwinds in maintaining above the critical support level of 94.00. The asset is dropping after encountering resistance at 94.50 and is expected to remain on edge until Thursday's release of Australian employment data.

Due to growing geopolitical tensions, the cross has declined. After Russian separatists expanded their military activity into Poland, the risk profile has deteriorated. In reaction, the Russian Federation has denied any involvement in the incident, while Poland has requested a meeting with NATO members.

Despite the release of the minutes from the Reserve Bank of Australia (RBA) on Tuesday, the risk gauge remained largely contained. Despite an unprecedented rise in inflation to 7.3%, the RBA minutes indicated that there was a 75% possibility of a 25 bps rate hike.

The board agreed that acting consistently on policy rates would bolster the trust of financial market participants and the general public in the monetary policy framework. In addition, RBA officials considered that the Official Cash Rate (OCR) had risen significantly in a little period of time. In addition, the interest rate forecast has been increased to 8%.

Meanwhile, Japanese investors responded less negatively to Tuesday's dismal Gross Domestic Product (GDP) statistics. The Japanese economy contracted 0.3% in the third quarter, contrary to predictions of 0.3% growth and the previous announcement of 0.9%. The economic catalyst has demonstrated a negative growth rate of 1.2% on an annualized basis, compared to the predicted expansion of 1.1% and the previous release of 3.5%.

This week, the Australian payroll data will be the most important asset trigger. According to the consensus, the economy added 15k jobs in October, compared to a meager increase of 0.9k in September. The unemployment rate is estimated to be 3.6%, up from 3.5% in the previous report.