AUD/NZD hits one-week low on strong NZ jobs report

The bid tone around NZD spiked, pushing the AUD/NZD to a one-week low of 1.0811 levels after the official data showed the New Zealand jobless rate dropped to 4.9% in the March quarter.

Trades around 50-DMA

The cross was last seen trading around the 50-DMA level of 1.0831. The New Zealand's unemployment rate fell more than expected in the first quarter, while the labor force participation rate reached an all time high, largely due to the continuing influx of migrants.

The strong labor data overshadowed the muted wage inflation and pushed the NZD higher across the board.

AUD/NZD Technical Levels

A break below 1.08 (zero levels) would open doors for 1.0761 (Apr 7 low). A daily close below the same would mark an end to the rally from 1.0642 (Apr 20 low) and could yield a drop to 1.0665 (100-DMA).

On the higher side, breach of 1.0867 (5-DMA) would open up upside towards 1.0912 (May 2 high) and 1.0935 (May 1 high).