Australia, NZ dollars find footing on path out of lockdowns

SYDNEY: The Australian and New Zealand dollars found some kind of footing on Thursday after three days of losses as signs of progress with opening up their economies from coronavirus lockdowns offset global risk aversion.

The Aussie was hanging on at $0.7354, after finding support at $0.7345, but remained well short of the recent top at $0.7478. Technically, it needs to hold above major support around $0.7290 for a chance to resume its rally.

The kiwi dollar was also steadier at $0.7088, having found support at $0.7076. That was some way from the recent three-month top of $0.7170 but well above the August trough at $0.6810. There was hopeful news on the pandemic front with New South Wales planning to partially reopen its economy when 70% of adults are fully vaccinated which is likely around mid-October or even earlier.

A loosening is sorely needed as payrolls data out on Thursday showed a sharp drop in jobs in the first half of August.

Jobs in NSW have now fallen by 8.4% since the lockdown began on June 26, a decline that is finally expected to show in the official August labour report out next week.

“We expect a massive 300,000 decline in employment, driven almost entirely by NSW,” said CBA economist Stephen Wu.