- AUD/NZD bleeding in a bullish structure headed towards a test of trendline resistance.
- RBA rate cuts not off the table and PBoC slash their prime rate.
AUD/NZD has fallen below a key support on the charts as the People's Bank of China slash their prime rate (LPR) to lower borrowing costs and ease financial strains on companies hit by the virus epidemic. AUD/NZD is currently trading at 1.04411, down 0.10% on the session falling from a high of 1.10471 to a low of 1.0428.
- China sets 1-year loan prime rate at 4.05% vs 4.15% a month earlier.
- China sets 5-year loan prime rate at 4.75% vs 4.80% a month earlier.
Aussie jobs data in full
- Australia Jan Employment +13.5k s/adj (Reuters poll: +10.0k).
- Australia Jan Unemployment rate +5.3 %, s/adj (Reuters poll: +5.2).
- Australia Jan Full time employment +46.2k s/adj.
- Australia Jan Participation rate +66.1 %, s/adj (Reuters poll: +66.0 pct).
Aussie drops to fresh lows on combined bearish events
USD/CNY spiked from 6.9975 to 7.0011 on the news and AUD/USD dropped to fresh 11-year lows. This has tipped the balance back in favour of the AUD/NZD bears as the odds of a rate cut from the Reserve Bank of Australia move higher considering today's miss in the Unemployment rate of 0.1%.
However, while the chances of a rate cut are probable, there are still positive takeaways fro the jobs data, given the Participation rate inched higher, which likely makes up for some of the bearishness in the unemployment rate missing expectations, 5.2% vs 5.3% actual, and higher than the 5.1% prior.
AUD/NZD levels
AUD/NZD fell back to 1.0450 support structure from 1.0470 prior to the jobs data release and then extended losses below this key support to 1.0428, as the next key structure. More on the technical outlook here: AUD/NZD Price Analysis: Bears looking for a break to 1.0390, although bullish outlook constructive to 1.05 handle.
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 holds gains above 1.0700, as key US data loom
EUR/USD holds gains above 1.0700 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
GBP/USD extends recovery above 1.2500, awaits US GDP data
GBP/USD is catching a fresh bid wave, rising above 1.2500 in European trading on Thursday. The US Dollar resumes its corrective downside, as traders resort to repositioning ahead of the high-impact US advance GDP data for the first quarter.
Gold price edges higher amid weaker USD and softer risk tone, focus remains on US GDP
Gold price (XAU/USD) attracts some dip-buying in the vicinity of the $2,300 mark on Thursday and for now, seems to have snapped a three-day losing streak, though the upside potential seems limited.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
US Q1 GDP Preview: Economic growth set to remain firm in, albeit easing from Q4
The United States Gross Domestic Product (GDP) is seen expanding at an annualized rate of 2.5% in Q1. The current resilience of the US economy bolsters the case for a soft landing.