Australian dollar steadies, markets await jobs data for steer on rates

Business Recorder reported that the Australian and New Zealand dollars edged higher on Wednesday as the US currency paused its recent rally, though both remained close to key support levels. The Aussie traded at $0.6987 after rebounding almost 0.4% overnight, while the kiwi, up 0.5%, stood at $0.5615 and had climbed clear of its 17-month low of $0.55805. Stacked resistance above the kiwi suggests any further gains will be tough to achieve.

Minutes from the Reserve Bank of Australia's latest policy meeting read as more hawkish than governor Michele Bullock's press conference, which followed a quarter-point increase to 4.6%. Board members mentioned the Aussie repeatedly and flagged that its value might drop if overseas central banks kept tightening while the RBA held rates steady. Nomura economist Andrew Ticehurst said the minutes pointed to greater sensitivity to rate increases abroad than he had expected.

Pricing in markets points to roughly 30% odds of a hike to 4.85% when the RBA meets on November 3, with December at 50%. The September jobs report, due Thursday, could shift that view, with economists expecting 20,000 new positions after August's surprisingly strong 39,500 gain. Unemployment, which unexpectedly hit a five-year high of 4.6% in August, is seen holding steady, but a rise to 4.7% would weaken the argument for a November rate increase.