AUD/NZD rockets towards 55 DMA looking for 1.09 closes

By FXStreet FXStreet (Guatemala) – AUD/NZD is currently consolidating the post Aussie jobs data rally testing the 1.0870’s having spiked from 1.0755 lows.

AUD/NZD surged on the excellent jobs data and has pulled out of the consolidation phase around the 200 SMA on the 4hr chart for the month of November. On the following data, the RBA will be relieved and unlikely to cut interest rates as the current MP is having the intended effect in the economy while the jobs market continues to improve based on low interest rates, a weaker currency and lack of wage inflation, for now, that has been encouraging employment in the last half of the year. This all leaves the expected divergence between the RBNZ and RBA that much wider and favours the upside in the cross.

The full-time jobs arrived at 40k vs -10.4k last, with part-time jumping 18.6k. The key Australian unemployment rate fell out of the RBA’s advised bracket of 6 to 6.5% and dropped to 5.9% vs 6.2% expected and 6.2% last. The participation rate however was at 65% vs 64.9% exp and 64.9% last.

Sean Callow, analyst at Westpac explained that the AUD/NZD has spent almost all of Q4 …read more

Source:: FX Street