AUD/NZD tanks on signs Aussie jobs market is cooling

Offered tone around AUD strengthened, pushing the AUD/NZD cross to a session low of 1.0605 after data in Australia showed the full time jobs tanked in September.

Trades at 10-day low

At 1.0605, the cross is trading at its lowest in ten days. Aussie bond yields retreated from daily highs and currently trade largely unchanged on the day, thus reducing the appeal of the Aussie dollar. Moreover, the drop in full time jobs overshadowed the slight reduction in the unemployment rate.

Meanwhile, the Kiwi dollar extended its three-day winning streak, thus adding to the bearish pressure around the cross. The AUD/NZD pair was last seen trading around 1.0608 levels.

AUD/NZD Technical Levels

A break below 1.08 (zero figure) would open doors for 1.0563 (38.2% of Sep 14 low – Oct 14 high), under which losses could be extended to 1.05 levels (50% Fibo + zero figure). On the higher side, breach of resistance at 1.0640 (23.6% of Sep 14 low – Oct 14 high) could yield a re-test of 1.0696 (daily high), beyond which the latest cyclical high of 1.0765 (Sep 14 high) could act as a major resistance.