- The AUD/NZD slips back into consolidation ranges as the Aussie lacks momentum.
- Australian employment figures in the pipe will hopefully drive some fresh sentiment shifts.
- China data on Friday could produce knock-on effects for the AUD.
The AUD/NZD backslid to a daily low of 1.0840 in Wednesday’s trading, with the Aussie (AUD) backing up ahead of inbound labor market data due in the Thursday trading window. The Kiwi (NZD) remained relatively on balance, unmoved by a notable lack of economic calendar data on the docket for the New Zealand currency.
Aussie unemployment rate expected to hold steady
Markets are broadly expecting Australia’s Unemployment Rate to hold steady at 3.7% for the month of August, holding steady at the previous month’s figure.
Meanwhile, Australian Employment Change for the month of August is expected to tick higher, with market analysts anticipating a printing of 23K, versus the previous period’s reading of a 14.6K decline.
The Kiwi remains under-represented on the economic calendar, but China data due on Friday, including Chinese Industrial Production figures and annualized Retail Sales for August, could see the Aussie gain some momentum with knock-on market effects.
China’s YoY Retail Sales for the month of August are expected to move upwards, from 2.5% to 3%, while Chinese Industrial Production figures are also expected to improve, forecast to print at 3.9% versus the previous 3.5%.
AUD/NZD Technical outlook
The AUD/NZD remains trapped firmly in the middle, with Wednesday’s Aussie slip into the red sending the pair firmly back into the recent consolidation region. The 100-day Simple Moving Average (SMA) continues to provide support for the longer candlestick periods, but the 50-day SMA continues to consolidate, reinforcing the middling patterns on the Aussie-Kiwi charts.
The current ceiling rests at the last meaningful swing high near 1.0920 in late July, with the floor priced in at early August’s drop-and-rebound from 1.0740.
AUD/NZD daily chart
AUD/NZD technical levels
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
AUD/USD side-lines near 0.6200 as traders await US NFP report
AUD/USD consolidates near 0.6200 early Friday, just above its lowest level since October 2022 as traders move to the sidelines ahead of Friday's closely-watched US NFP data releae. Meanwhile, rising bets for an early RBA rate cut, China's economic woes and US-Sino trade war fears act as a headwind for the Aussie.
USD/JPY bulls take a breather above 158.00 ahead of US NFP
USD/JPY takes a breather above 158.00 following the release of household spending data from Japan, slightly off the multi-month top amid wavering BoJ rate hike expectations. However, the widening of the US-Japan yield differential keeps the pair supported amid a bullish US Dollar. US NFP data awaited.
Gold price consolidates below multi-week top; looks to US NFP for fresh impetus
Gold price enters a bullish consolidation phase below a four-week top touched at $2,678 on Thursday as bulls await the US NFP report before placing fresh bets. In the meantime, geopolitical risks, trade war fears and a weaker risk tone might continue to act as a tailwind for the safe-haven XAU/USD.
Ripple's XRP plunges over 4% following funding rates decline
Ripple's XRP declined 4% on Friday following a decline in its funding rates. The remittance-based token could decline to test the $2.17 support level if the crypto market decline extends.
How to trade NFP, one of the most volatile events Premium
NFP is the acronym for Nonfarm Payrolls, arguably the most important economic data release in the world. The indicator, which provides a comprehensive snapshot of the health of the US labor market, is typically published on the first Friday of each month.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.