The AUD / NZD en route to the 38.2% fibo target in 1.0560 after the Australian jobs blockbuster

• AUD / NZD speculation was sidelined by very strong job data, particularly in the full-time jobs sector, which pushed the Australian dollar to a 1.05 level against the NZD.
• The AUD / NZD is currently trading at 1.0480 on a low of 1.0435, after trading at 1.0488 and leaving the long-term support line intact.

The AUD / NZD pair has been technically stomping on thin ice lately. The cross has withstood a string of disappointing economic data and accommodating rhetoric, but in the case of employment data in Australia, the mood will change rapidly in favor of an upward recovery extended.

The data arrived as follows:

• Change in employment: +39.1 K compared to the expected 15.0 K, before 21.6 K – (Revised 16.9 K)
• Unemployment rate: 5.0% against 5.0% expected, against 5.0% previously.
• Full-time job change: 65.4K, which is a very good result while the previous one was -3K – (Revised -9.5k)
• Change in part-time job: -26.3K while the previous was 24.6K – (Revised 26.4KB)
• Participation rate: 65.7% compared to the 65.6% forecast, against 65.6% previously.

Elsewhere, during the events of the night, the minutes of the FOMC were revealed. TD Securities badysts summarized them as follows:

• The FOMC minutes revealed that uncertainty was the key factor behind the Fed's regime change, rather than significantly weaker prospects. However, low inflation was added to the list of concerns and sparked debate on further increases.
• Conversely, the balance sheet discussion was more accommodative for the markets. "Almost all" in January, participants felt that the Fed should "for too long" announce a plan to stop runoff "later this year". Our baseline scenario is from the end of June to the end of runoff, given the stated desire to maintain a reserve on excess reserves.
• Market rates, both linear and non-linear, responded moderately, as compared to market expectations, the minutes were slightly less accommodative in terms of rates, but more accommodative from a balance sheet perspective.
• The essentially dovish signal on the balance sheet should keep the USD on the back. It further enhances the potential for global performance and is also expected to strengthen the upside strength of the DXY. The Fed's speech has mainly telegraphed this change, leading to a slight retracement of the forex market on the publication, but nothing here should stop the recent decline in the currency.

AUD / NZD Levels

The AUD / NZD pair has managed so far to maintain the key horizontal support line is. Since June 2017, again tested on February 13, 2019, despite a series of disappointing data and accommodative rhetoric from the Australian economy and the RBA. However, these data today are now leaving this line in the sand in the rearview mirror and the cross may extend its correction towards a bullish target at the target of 38.2% fibo in the 1.0560.