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AUS Jobs Data Has Two Sides; AUD/NZD at Consolidation Channel Support

Today's Australian jobs data has two sides to it. The headline employment change number for June came in at 15.9K, which beat forecast of 12.3K, and was much better than the -5.1K reading in May. 

(source: Australian Bureau of Statistics)

The detail sheds some light: While total employment increased, full-time employment fell by 3,800. It was the 19.700 part time employment that led the increase in jobs.

Unemployment rate rose by 20,300. Coupled with an increase in participation by 0.1 to 64.7%, the unemployment rate rose to 6.0%. While the unemployment rate rose, the silver lining was that more people were looking for jobs, reflecting improving sentiments. 

At the end of the day, this jobs data is mixed, and should not be a AUD-positive factor. Although it does not seem like it should be AUD-negative, we are seeing traders sell the AUD after the initial bullish reaction. This suggests that AUD-strength might be taking a break. 

When compared to the dominant NZD, AUD looks like it will be continuing a bearish trend. The AUD/NZD daily chart shows the pair pushing at the 2014-rising channel support.This is a consolidation channel that followed a prevailing bearish trend. 

(audnzd daily chart)

If the current dip clears below 1.0650, it will be below the April and May lows and would indicate bearish continuation, first toward the 2014-low around 1.05.