As recently as October the former head of the ABS was famously quoted saying the employment data was 'not worth the paper they're written on'. Around one year ago the employment data experienced extreme large swings which bought the methodology for calculating the data into question, so it is of no great surprise to see my Twitter feed dogged with critisicm about today's monster data set.
However that did not stop the Australian Dollar flying across the board, sending AUDUSD back above 71c in a flash, AUDNZD to a 6-day high and AUDJPY to a 6 day high. Technically the Aussie is looking a little overstretched and now finds itself below a combination of trendlines, resistance and pivots. If we also look at the daily ranges you'll see that it reached it's 'typical' daily range which also makes a continuation of the upside fairly limited.
Whilst we remain between key levels of support and resistance and form an Apex we can expect these bursts to occur in either direction. However until the market breaks out of the Apex it is very difficult to anticipate the direction of the breakout.
We also need to keep in mind that there is no major news from US, Australia or China for the remainder of the week so if you were late to the party on this one, you may find it tricky to capitalise on any further upside.
If there is any potential for further direction it is likely to be a USD story, driven by comments from Draghi and Yellen who are both due to speak before the end of the weekend.
Australian unemployment back below 6%
Not many (if any) pundits were calling for unemployment to break below 6% today and for employment change to beat consensus by nearly 4 times. However such large deviations from forecasts will continue to be met with suspicion.