AUD/NZD loses the 1.08 level on NZ unemployment beat
|- Bears pounce as the NZ jobs data beats expectations with an impressive unemployment number.
- All eyes will now focus on the RBNZ, which will be troublesome for the kiwi.
AUD/NZD has lost its footing in a surge in the kiwi following a strong beat in the unemployment number which smashed expectations.
At the time of writing, AUD/NZD is down over 0.17% as the 4.0% vs an expected 5.6% and prior 4.2% unemployment number is digested by the market.
The kiwi has been Struggling even amid further easing from the RBA, so possibly they weren’t dovish enough, analysts at ANZ Bank suggest.
Next week will be the real challenge for this cross given our expectations for the RBNZ.
The case for further significant monetary easing is clear with inflation set to plummet and unemployment heading towards double-digits. Expanding the Large-Scale Asset (LSAP) Programme (QE) remains the first choice to deploy more stimulus at the August MPS, but we also expect much more clarity on the “menu” of policy options, detailing the criteria for when each tool might be considered, and stressing that choices will depend on circumstances.
AUD/NZD levels
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