Citi maintains a bullish bias on AUD, and a bearish bias on NZD over the coming weeks.
"AUD: July jobs beat. CitiFX notes that the jobs data has beaten the market expectation again, following a stronger result in June. The number employed increased by 114.7k in July, decreasing from 228.4k in June but exceeded the consensus of around 30.0k. Especially, a good point is the full time workers, because it shrank by 23.6k in June but eventually turned to an increase in July, registering 43.5k growth. The increase in part time jobs decelerated to 71.2k from 252.0k meanwhile. The unemployment rate slightly increased to 7.5% from 7.4%, while the market expectation was a rise to 7.8%.," Citi notes.
"NZD: Dove reinforcement. RBNZ Chief Economist Yuong Ha spoke overnight about LSAP. “We actually want to do more,” he said. “A combination of larger number, longer timeframe and a stepped-up weekly run rate is signaling our intent we want to drive interest rates lower.” “Very pointedly we’re trying to do more to get interest rates lower than where they currently are,” Ha said. Regarding, NZD, Ha acknowledged “While we’d like the exchange rate lower we just have to be understanding that it’s out of our control.," Citi adds.