AUD/NZD spiked ~60 pips higher upon.....>

AUSSIE-KIWI: AUD/NZD spiked ~60 pips higher upon the release of downbeat NZ

labour market data. Although Q1 unemployment edged lower to 4.2% from 4.3%, this

was due to a decline in participation rate, as employment change moved into

negative territory on a Q/Q basis. Wage data also painted a rather pessimistic

picture.

- Elsewhere, Australian AiG m'fing PMI accelerated to 54.8 from 51.0.

- This comes after the rate slid 25 pips Tuesday as the Aussie finished at the

bottom of the G10 pile, with the rate continuing its recent pullback from the

Apr 17 YTD high of NZ$1.0732.

- The rate last deals at NZ$1.0595, 35 pips higher on the day. Bulls need a

clean topside breach of the NZ$1.0600 mark and the 21-DMA, situated a further 4

pips above, before challenging the Apr 25 high of NZ$1.0643. Conversely, bears

look for a return below NZ$1.0589/88, which capped gains on Apr 26/29. A move

through the levels would open up yesterday's low of NZ$1.0551, which has limited

losses also today.