• NZD/USD is stuck in a ranger around the Aussie data.
• Bears need to break current lows and support or face a correction into 0.6470.

NZD/USD has been pressured on the back of the Australian jobs report but the bulls are moving in on anticipation that the data will do little to steer the Reserve Bank of Australia away from its tightening bias. At the time of writing, NZD/USD is down some 0.1% and has travelled between a low of 0.6420 and 0.6449 so far on the day. 

The Aussie labour report, released by the Australian Bureau of Statistics, was released as follows:

• Australia December Employment -14.6k s/adj (Reuters poll: +22.5k).
• Unemployment rate +3.5 pct, s/adj (Reuters poll: +3.4).
• Full-time employment +17.6k s/adj.
• Participation rate +66.6 pct, s/adj (Reuters poll: +66.8 pct).

Meanwhile, speculation has been rising that the RBA could be nearing the peak of its interest rate cycle while hopes for improved trade ties with China support the view that Australia will avoid recession this year. Nevertheless, domestic dada had been showing signs of resilience and has been strengthening expectations of another 25 bps rate hike from the RBA next month.

''While the Australian economy is expected to slow overall this year, recessionary risks appear low.,'' analysts at Rabobank had argued. ''This should increase the resilience of the AUD and provide insulation against headwinds implied by forecasts of a slowdown in global growth.''

NZD/USD technical analysis

As for the Kiwi, which tends to trade in the same direction as the Aussie, should the bulls commit to the bid, then the following chart analysis could play out:

The bulls need to get over 0.6440/50 for a look into the M-formation's neckline near 0.6470 for the day ahead. On the other hand,m should the micro M-formation's neckline hold up, a subsequent break of the current support opens the risk of a considerable move to the downside in an extension of the bearish correction: