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14 Mar 2013
Forex Flash: AUD/NZD in midst of significant week surrounding central banks – Westpac
It has been a very significant week for the AUD/NZD – pricing for the RBA cash rate had already shifted markedly this month, from around -50bp ahead of the RBA meeting to around -26bp before the recent Australian employment data release. At time of writing only about half a rate cut is priced in (-13bp) with an aggressive reaction to the
72K surge in total employment, the largest monthly gain since July 2000.
The AUD/USD jumped about 75 pips to finally retest the 1.0380 area that had held since early February. “Naturally such a stunning headline stokes suspicions about its validity. Any jobs report is based on a sample that might not necessarily be representative of the whole workforce. Moreover, as the ABS says it is trailing an online survey alternative to the usual interviews, which may have added to the volatility.” notes the Westpac Strategy Team.
72K surge in total employment, the largest monthly gain since July 2000.
The AUD/USD jumped about 75 pips to finally retest the 1.0380 area that had held since early February. “Naturally such a stunning headline stokes suspicions about its validity. Any jobs report is based on a sample that might not necessarily be representative of the whole workforce. Moreover, as the ABS says it is trailing an online survey alternative to the usual interviews, which may have added to the volatility.” notes the Westpac Strategy Team.