AUD/JPY clings to gain near 81.00 amid risk-on sentiment

  • AUD/JPY manages to hold onto the recent gains on Thursday in the Asian session.
  • Mixed economic data, easing of COVID-19 restrictions influence the aussie performance.
  • The Japanese yen surrenders gains on the risk-on mood among investors.

AUD/JPY edges higher on Thursday’s  Asian session. After touching the high of 81.41 in the overnight session, the pair consolidates the recent gains.  As of writing, the AUD/JPY is trading at 81.09, up 0.11% for the day.

The aussie gained on improved risk sentiment after the latest sign of improved communication between Bejing and Washington. A meeting in Switzerland between China’s top diplomat Yang Jiechi and US National Security Adviser Jake Sullivan showed signs of mutual cooperation to address vital transnational challenges. In addition to that, the new COVID-19 invections in New South Wales fell on Wednesday as the authorities looked to start easing tough curbs amid a rise in vaccination rates but the delta outbreak in Victoria limit the enthusiasm for the aussie traders, with daily new infections topping 1,760 for the first time since the start of the pandemic.It is worth noting that S&P 500 Futures were trading at 4,371, up 0.38% for the day.

The gains were limited following the contraction in the Ai Group Service Index, which came at 0.1 points higher to 45.7 in September from 45.6 in August. The reading pointed to the second consecutive month of contractions in the service sector.

As for now, traders turn their attention to the Bank of Japan (BOJ) Governor Hariko Kuroda speech to gauge the market sentiment.

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