AUD/NZD holds in positive ground following blockbuster jobs report
- AUD caught a bid on a very strong jobs report.
- AUD/NZD bears lurking on central bank divergences.
AUD/NZD has added to the day's gains following strong jobs data which, while was anticipated, blew all expectations out of the grounds. The cross is 0.27% higher on the day and has rallied from a low of 81.66 and risen to a high of 82.01.
The data arrived as follows:
- Australian Unemployment Rate Nov: 4.6% (exp 5.0%; prev 5.2%). This was a huge beat.
- Employment Change Nov: 366.1K (exp 200.0K; prev -46.3K). This was also very impressive.
- Participation Rate Nov: 66.1% (exp 65.5%; prev 64.7%).
However, the Aussie has failed to rally significantly because the Reserve Bank of Australia is not on the verge of hiking interest rates anytime soon. RBA's Phillip Lowe today reinforced the dovish sentiment when he said that there will not be any rate rises next year. This leaves the divergence between the Reserve Bank of New Zealand and the RBA a negative factor for AUD/NZD in the medium term.
Moreover, a solid post-lockdown momentum through October, as indicated by the lift in payrolls, suggested a robust gain for employment. When the dist settles, the Aussie could well be vulnerable in the face of central bank diverngences.