- AUD/NZD has dropped from 1.0761 on a very impressive jobs data outcome and has taken out S3 and the 21st Oct 1.0767 low and lowest levels since June, now a touch below the 61.8% fibo at 1.0755.
- AUD/NZD eyes a run to the 76.4% fibo at 1.0656.
AUD/NZD has been in decline since the double top of 8th/9th August highs and is now breaking into renewed bearish territory having just pierced the 61.8% Fibo on the New Zealand jobs data as follows: (NZ: Unemployment rate drops to 3.9% in Q3 vs 4.5% expected)
- Unemployment rate: 3.9% ….(The main driver of the upside) vs the expected 4.4%, prior was 4.4%, revised from 4.5%.
- Employment change q/q: 1.1% … (Another very positive outcome) vs expected 0.5%, prior was 0.5%.
- Employment change y/y: 2.8% betaing the expected 2.0%, prior was 3.7%.
- Participation rate: 71.1% rising even as unemployment falls, another strong sign in this report.
- expected 70.9%, prior was 70.9%.
- Average hourly earnings: 1.4% (Good data) vs the expected 0.8%, prior was 0.2%.
- Private wages including overtime: 0.5% vs the expected 0.5%, prior was 0.6%.
- Private wages excluding overtime: 0.5% vs the expected 0.5%, prior was 0.6%.
- Traders will now look to the RBNZ survey of inflation expectations (1pm Syd/10am Sing/HK) which was 2.04%yr in Q3. Then we have the RBNZ later this week which is already of the view that it had met half of its mandate of 'maximum sustainable employment", so it will make this meeting even more interesting following this data.
AUD/NZD levels
A break of the 76.4% fibo at 1.0656 opens the way down to a full retracement of the 11th April lows down at 1.0489. 1.0380 would be the next major to the downside thereafter. On a pullback, the 21-D SMA is located at 1.0856.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD steadies above 1.0600, awaits German ZEW and Powell speech
EUR/USD is holding above 1.0600 in the European morning on Tuesday, having hit fresh five-month lows. The pair draws support from sluggish US Treasury bond yields but the rebound appears capped amid a stronger US Dollar and risk-aversion. Germany's ZEW survey and Powell awaited.
GBP/USD stays below 1.2450 after UK employment data
GBP/USD trades marginally lower on the day below 1.2450 in the early European session on Tuesday. The data from the UK showed that the ILO Unemployment Rate in February rose to 4.2% from 4%, weighing on Pound Sterling.
Will Gold reclaim $2,400 ahead of Powell speech?
Gold price consolidates the rebound below $2,400 amid risk-aversion. Dollar gains on strong US Retail Sales data despite easing Middle East tensions. Bullish potential for Gold price still intact on favorable four-hour technical setup.
SOL primed for a breakout as it completes a rounding bottom pattern
Solana price has conformed to the broader market crash, following in the steps of Bitcoin price that remains in the red below the $65,000 threshold. For SOL, however, the sensational altcoin could have a big move in store.
Key economic and earnings releases to watch
The market’s focus may be on geopolitical issues at the start of this week, but there is a large amount of economic data and more earnings releases to digest in the coming days.