The Australian dollar rose versus its Japanese counterpart in yesterday's trades as the government sold 3.25 Billion Australian dollars worth of notes due in April 2029, the longest-maturity bonds the government has on record. The nation's previous longest bond was due in April 2027, sold last October 2011. Conversely, the Samurai declined after Japanese Prime Minister Yoshiniko Yoda said that the government is ready to act should the currency continue to strengthen.

In an interview with Bloomberg's Matt Winkler and Brian Fowler in Tokyo, Noda said that the Yen's strength as a "serious problem," adding that the government would "have to observe the market closely to see whether there are excessive or disorderly moves." Today, the Samurai is likely to drop versus the Aussie core machine orders in Japan fell by 3.3 percent in August, its first contraction in three months.

Meanwhile, the Aussie is expected to gain after data revealed that the number of workers in the country rose more than the expectations in September, reducing worries about the effects of China's economic slowdown. A report from the Australian Bureau of Statistics showed that 14,500 jobs were added in September, the biggest increase since May. However, gains of the Aussie could be limited as the unemployment rate in the previous month likewise rose to the highest level since April of 2010. The jobless rate posted an increase of 5.4 percent, from 5.1 percent in August, as few of the country’s biggest economies cut jobs. Queensland recorded the highest unemployment rate at 6.3 percent, due to the end of the mining construction boom. In today's Asian exchanges, the Aussie is likely to find strength from the better-than-expected Employment Change data. Thus, a long position for the AUDJPY pair is recommended in today’s Asian exchanges.

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