AUD/NZD bounces from 1.0880 on Thursday’s Australian unemployment data

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  • AUD/NZD swings ahead of Australian jobs data.
  • The lack of momentum for the pair is notable as the top continues to strengthen from 1.0880.
  • Data-light Kiwi sees market flows as a major factor.

The AUD/NZD pair is taking a step lower on Wednesday, returning to familiar consolidation territory as the Aussie dollar (AUD) struggles to find meaningful momentum against its neighbor the Kiwi (NZD).

The Aussie managed to break above 1.0880 yesterday, but failed to hold and fell, now trading in the 1.0860 area. The low for the day is currently marked around 1.0845.

Australian employment figures fall

The Aussie could see some volatility from traders when the Australian jobs data comes out, with employment and unemployment figures scheduled for early Thursday.

The Australian economy is forecast to have added 23,000 jobs in August, down from a fall of 14,600 in the previous month. Meanwhile, the unemployment rate for the same period is expected to remain steady at 3.7% month-on-month. Aussie bulls will no doubt look for better-than-expected jobs data to push the AUD higher. Both indicators are scheduled to be printed at 01:30 GMT on Thursday.

The Kiwi remains severely underrepresented on the economic calendar this week, with little to note to strengthen the New Zealand dollar. BusinessNZ’s Purchasing Managers’ Index (PMI), an index of purchasing managers’ diffusion in New Zealand’s manufacturing sector, will be released on Thursday evening. The reaction of the market is expected to be insignificant, and forecasts on the indicator in general are not made. The manufacturing PMI has been printing in the region below 50.0 since March, and no major surprises are expected.

AUD/NZD Technical Forecast

For most of the year, the Aussie has been trading in familiar territory against the Kiwi, moving through deep consolidation territory and well away from last year’s highs of 1.1490, a region that might as well be on another planet.

The daily candlesticks indicate a slightly bullish direction, lows are slowly rising, but 1.0880 seems to be the ceiling for now, and the uptrend line from 1.0725 is pushing price action to the level.

The 100- and 50-day SMAs remain flat and consolidating, currently around 1.0820, and it will take significant moves in either direction to restore momentum to the SMAs.

AUD/NZD Daily Chart

AUD/NZD technical levels

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