Yes. Many regulated financial services customers use the public Internet to connect to Microsoft cloud services as they are able to utilise the robust encryption and cypher suites supported by the platform to encrypt communication over the public network. APRA regards appropriate encryption techniques as a risk mitigation strategy for this scenario.
Azure ExpressRoute lets you create a private connection between Microsoft datacenters and on-premises or co-located infrastructure through service providers such as Equinix, Megaport, NEXTDC and Telstra. Visit https://www.microsoft.com/en-us/trustcenter/security/encryption and https://azure.microsoft.com/en-us/services/expressroute to learn more about encryption practices of Azure Cloud.