AUD/NZD Slides to One-Week Low as Australian Jobs Data Disappoints

AUD/NZD dropped to a one-week low after Australia’s April jobs report disappointed, knocking the pair from ~1.0820 to as low as 1.0770. The economy added just 11,200 jobs versus a 25,000 consensus and unemployment rose to 4.1%, prompting markets to sharply cut the probability of an RBA rate hike in June (swaps show <20% chance). The weaker labour data narrows Australia’s yield advantage over New Zealand (RBA cash rate 4.35% vs RBNZ 5.5%), increasing downside risk for AUD/NZD with technical support at 1.0770–1.0780 and a potential move toward 1.0700. Traders will focus on Australia’s CPI on May 29 and RBA commentary for direction.