A$ Weighed By AUD/JPY Weakness, Jobs Data In Focus Next Week

AUD/USD dipped towards 0.6810, before sentiment stabilized somewhat. We aren't much higher though at 0.6815/20 currently. AUD/JPY remains the key short term driver. We aren't too far away the days lows, currently tracking at 92.50, as the market contemplates potential shifts in Japan policy settings following the shooting of ex-PM Abe in Japan.

• Elsewhere, equity futures are lower in the US, which has weighed on sentiment, while China equities are struggling to stay positive. Iron ore is also off recent highs, back to a $113 handle, versus +115.50 earlier.
• Yield spreads have maintained steady levels (-42bps for the AU-US 2yr) but haven't been a key driver of sentiment for the currency today.
• Looking ahead, next week's data calendar features the CBA household spending measure, out on Tuesday, along with the Westpac Consumer Confidence print, and the NAB Business survey. Both prints will be important updates from a household and business sentiment standpoint.
• On Thursday inflation expectations are due, along with jobs data for June. The market expects jobs growth of +30k (+60.6k last month) and the unemployment rate to dip to 3.8% from 3.9% last month.