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The Australian dollar popped higher on Thursday after jobs data proved far stronger than expected, pushing up bond yields and perhaps bringing closer the day when official interest rates might rise. The Aussie dollar added 0.5 percent to $0.7274 and put some more distance between the week's lows at $0.7164. The next major barrier is the November top at $0.7303 and then a September peak at $0.7315.
The kiwi dollar followed to reach $0.6797, but faces stiff resistance at the November high of $0.6820. Australian government bond futures dipped in the wake of the data, with the three-year bond contract off 4 ticks at 97.810. The 10-year contract eased 2.5 ticks to 97.2650. New Zealand government bonds fared better, with yields down 2.5 basis points at the long end of the curve.

Copyright Reuters, 2018

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