Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
James Hyerczyk

The Australian and New Zealand Dollars are trading lower Thursday on light volume ahead of the release of the Australian Employment Change and Unemployment Change reports at 01:30 GMT. If yesterday’s volatile price action is any indication then these reports could trigger some wild swings in both currencies, but especially the Aussie Dollar.

At 00:41 GMT, the AUD/USD is trading .7171, down 0.0009 or -0.13% and the NZD/USD is at .6723, down 0.0003 or -0.05%.

Know where the Market is headed? Take advantage now with 

75% of retail CFD investors lose money

Wednesday’s trade was dominated by three headline events:  Weaker-than-expected New Zealand consumer inflation data, better-than-expected Chinese economic data and a surprise announcement by the New Zealand government.

New Zealand Dollar

The NZD/USD broke sharply on Wednesday in reaction to weaker-than-expected U.S. consumer inflation data that likely solidified the chances of a rate cut by the Reserve Bank of New Zealand (RBNZ) as early as May. As reported by Statistics New Zealand, consumer inflation for the March quarter came in at 0.1 percent, below market guesses of 0.3 percent and the RBNZ’s 0.2 percent forecast. That number dragged the annual inflation rate to 1.5 percent, below the central bank’s 2 percent target.

After the initial reaction to the CPI news drove the Kiwi to its lowest level since January 3, the NZD/USD began to rebound after the release of better than expected economic data from China.

The data from China showed its economy grew at a 6.4 percent annual pace in the first quarter, above expectations for a 6.3 percent growth rate. Industrial Production in China also beat the forecast with an 8.5 percent gain, while retail sales grew more than expected at 8.4 percent.

The Kiwi was further boosted after Prime Minister Jacinda Ardern said the public has spoken and she won’t introduce a capital gains tax while she leads the Labor Party.


Australian Dollar

The AUD/USD rose sharply early in the session on the back of the Chinese data, but prices collapsed late in the session to erase most of those earlier gains on profit-taking and position-squaring ahead of the release of today’s very important Australian jobs data.

February’s employment report was mixed and in this week’s Reserve Bank of Australia minutes, the central bank didn’t sound too excited about the upcoming report. In the minutes, the RBA said that an uptrend in the unemployment rate would open the door to a rate cut.

Traders are looking for the Employment Change to show the economy added 15.2K jobs in March while the Unemployment Rate is expected to increase slightly from 4.9% to 5.0%.

The AUD/USD is likely to break sharply if the jobs report is bearish since this will increase the chances of a rate cut by the RBA. Traders are currently betting on an August rate cut by the central bank.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.