AUD/NZD slips below 1.0450 after Australia Unemployment data disappoints
|- AUD/NZD registers two-day losing streak.
- Aussie unemployment snapped the previous two month’s declines while rising beyond market consensus.
- Coronavirus uncertainty prevails while the risk-tone cheering China’s efforts to placate traders.
AUD/NZD declines 0.10% to 1.0450 after Australia’s January month employment data disappointed the Aussie buyers on early Thursday.
As per the release, the Unemployment Rate stopped the previous declines in November and December by rising beyond 5.2% expected to 5.3%. The same supersede over the upbeat Employment Change, to 13.5K versus 10.0K forecast, as well as an increase in Participation Rate from 66.0% to 66.1%.
Read: Breaking: Bullish Aussie Unemployment Rate back to 5.3% vs 5.2% expected, AUD slides
Following the data, the Australian dollar registered broad weakness amid increasing odds of the RBA’s rate cut during its May month meeting. Earlier on Wednesday, the sluggish wage growth figures for the fourth quarter (Q4) challenged the Australian central bank’s optimism over the employment scenario.
It should also be noted that New Zealand’s Q4 Producer Price Index (PPI) registered mixed signals at the start of the Asian session. While the PPI input slipped below 0.4% forecast to 0.1%, the PPI output grew past-0.3% expected to 0.4%.
At the risk front, Hubei's coronavirus cases continue to flash the mixed signals, the latest re-revised guidelines are another surprise. Even so, efforts from Chinese diplomats to placate traders and infuse markets seem to have been praised off-late.
With this, the US 10-year treasury yields remain mildly positive near 1.58% whereas S&P 500 Futures follow Wall Street’s gains.
Looking forward, the People’s Bank of China’s (PBOC) Interest Rate Decision will be the immediate catalyst to follow whereas headlines concerning coronavirus can keep the driver’s seat.
Technical Analysis
A confluence of 21 and 50-day SMA around 1.0400 can keep luring the bears unless prices cross the monthly top surrounding 1.0510.
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