AUD Firms On Jobs Beat But Not Much Follow Through

AUD/USD spiked towards 0.6640 post the firmer than expected employment data. We sit slightly lower now near the 0.6635 level, still +0.25% firmer for the session. The data is likely to allay RBA fears of a sharp slowdown in the labor market, with better jobs growth, particularly in the full-time segment and the downtick in the unemployment rate.

• Still, we aren't seeing a big reaction in terms of AU-US spreads, the 2yr around the -98bps region, not too far away from where we opened (-102bps). Global events, particularly around the banking system, are still impacting broader sentiment.
• In the cross space, AUD/NZD is firmer back above 1.0740, but remains below session highs near 1.0770. AUD/JPY is lower though, as safe haven yen demand dominates. The pair is back below 88.00, we troughed under 87.50 during Wednesday's offshore session.