AUD: good labour data aren’t enough

Overnight the Australian labour data have been better than expected, but the Australian Dollar after an immediate reaction seems not to have changed his price action.

The labour market data seems to be way better, signaling better economic conditions for the country: decreasing unemployment rate at 5,7% (against previous 5,8% and 5,9% expected) and positive change in employment at 26,1k (previous -0,7k and 17k expected). That’s more: flat participation rate and growing inflations expectations. With those numbers the country is proving that his labour market and his economic conditions in general are growing driving out any doubt of the market.

In this situation the AUD is having a mixed behavior and, as sometimes in this case happen, spikes and drops are bringing volatility on the market.

Specifically the AUD/USD pair after the initial drop before the data disclosure, had an instinctive 20pip spike followed by a 40pip drop. At the moment the pair is trading flat at 0,7653 demonstrating that the investors, after having digest the positive news regarding the labour market, are now still weighing the possibility from the RBA to cut rates in the next months. Moreover the exit of the US PMI index this afternoon is making pressure at the pair.

AUD:USD 14apr

Slightly different situation for the AUD/NZD pair which, following Australian data, has spike for more than 100pip, braking the 1,11 barrier and trading at the moment at 1,1184 (+1,13%) continuing his climb.

Favoring this move is the heavy drop of the NZD/USD which at the moment is trading down to 1,28% after the bad price action of the Oil which is making heavy pressure to the Kiwi.

AUD:NZD 14apr

Interesting is the technical analysis of these two crosses:

regarding the AUD/USD the next resistance is positioned at 0,7700 (psychological level) while on the opposite side the immediate support for a bounce should be seen at 0,7609.

Considering the AUD/NZD pair, the next resistance which should be broken is at 1,1200 (round number).



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