AUD/JPY again struggles to keep gains above 77.00
- AUD/JPY backs off from the session high of 77.05 to 76.96.
- Australia’s construction work done fell more-than-expected in the third quarter.
AUD/JPY is looking to extend its three-day winning trend. While the pair is currently trading in the green, it is yet to establish a foothold above 77.00.
At press time, the pair is trading near 76.96, having put in a high of 77.05 early Wednesday. The bulls failed to secure a close above 0.70 on Nov. 9 and Nov. 11.
Aussie data disappoints
Construction work completed in the third quarter declined by 2.6%, led by a sizeable drop in the activity in the state of Victoria caused by coronavirus restrictions.
Economists had projected a smaller 1.9% contraction in the construction sector.
The weak data may have played a role in weakening the AUD’s bid tone and ensuring the break above 77.00 is short-lived.
However, with the US political uncertainty fading, the risk sentiment is likely to remain strong and keep the pair better bid. On Tuesday, President Trump said his aides would cooperate with President-elect Joe Biden’s transition to the White House, easing concerns about a long-drawn-out period of uncertainty.