The AUDNZD pair was slightly higher on the day after better than expected jobs numbers from the Aussie economy edged out the Kiwi GDP release. The Australian economy was expected to see a loss of 50k jobs in the latest report but the actual number was a gain of 111k.
The number was closely-watched in the past by the Reserve Bank of Australia and will ease the bank’s concerns over a need for further stimulus measures. The unemployment, which was expect to tick higher to 7.7%, was lower at 6.8%.
GDP data from the Kiwi economy was also slightly better after the year-on-year figure of -12.2% beat the expected fall of -13.3%. The number was larger than that of Australia but Finance Manager Grant Robertson was u[pbeat on the country’s prospects:
“If you compare unemployment, our peak is going to be significantly lower than Australia. We’re going to come out of this year with our debt a little lower than Australia. Our growth and our rebound out of this will be faster and quicker.”
This outlook for the Kiwi has taken the steam out of the Aussie jobs release and the pair is still at risk of losses in the weeks ahead. Both countries have seen speculation of negative rates in the future and this dynamic will be a key driver in the pair going forward.
The AUDNZD pair has broken out the uptrend support that kept the pair higher since the Mid-March low. The support was last tested in mid-July and early-September. The pair will test the 1.0820 support first but horizontal support also rests there and we could see a larger pullback in the pair to 1.0600-1.0700 levels. The Investing Cube team is available to assist all levels of traders with a Forex Trading Course or one-to-one coaching.
