The Australian dollar got a fillip on Thursday as data showed the country's jobless rate fell to its lowest since 2012, though the detail was considered too mixed to bring forward the likely timing of any interest rate hike.
Also aiding the Aussie were price gains for some key resource exports, with iron ore hitting a seven-month peak on the back of robust Chinese demand.
The currency AUD=D3 firmed a third of a U.S. cent to $0.7132 in the wake of the jobs figures, but faces tough resistance around $0.7150/60 which has defeated all attempts to break higher this week.
Australia's unemployment rate dropped to 5.0 percent in September, its lowest since April 2012, when analysts had looked for a steady outcome of 5.3 percent.
However, the entire decline was due to a sharp drop in people looking for work while employment disappointed with a modest net rise of 5,600 in the month.
The 5.0 percent level has been touted by the Reserve Bank of Australia (RBA) as a possible triggered for faster inflation, though it has also conceded that international experience suggests it might be a lot lower than in the past.
"Whether this translates to sustained stronger wages growth remains debatable," said Su-Lin Ong, head of Australian strategy at RBC Capital Markets.
"It demands persistent above trend growth and employment generation and on that front we are mindful of a number of challenges ahead," she added pointing to falling home prices, subdued consumption and a weaker global backdrop.
"Despite the encouraging labour market dynamics, these uncertainties are likely to keep the RBA on the sidelines for the foreseeable future."
Interest rate futures
0#YIB: are not fully priced for a hike in the 1.5 percent cash rate until well into 2020.The New Zealand dollar NZD=D3 lapsed back to $0.6548, after topping out at $0.6602 overnight.
The kiwi had lost ground after minutes of the last U.S. Federal Reserve policy meeting showed a clear consensus on the need for more rate rises there, lifting Treasury yields and the U.S. dollar.
New Zealand government bond
0#NZTSY= yields followed with rises of 2 to 3 basis points.Australian government bond futures slipped, with the three-year bond contract YTTc1 off 4.5 ticks at 97.855. The 10-year contract YTCc1 lost 4 ticks to 97.2450.
