AUD/USD's post AU-labour market report.......>

AUSSIE: AUD/USD's post AU-labour market report rally has remained capped, with

participants noting that the fall in the unemployment rate was a result of the

lower than expected participation rate. The RBA will likely look through the

most data. The reaction in mkt pricing of RBA hikes has been ltd. RBA Dep. Gov.

Debelle spoke Weds, suggesting that unemployment may fall further than it has

done in prev. instances before wages pick up. This points to a limited RBA

reaction function in the case of a lower unemp. rate absent an uptick in wages

(especially when driven by a lower part. rate).

- It is worth noting that the unemp. rate has now reached a level that the RBA

was exp. it to hit in late '20, although this was also covered by Debelle, as he

noted that unemp. may decline at a faster rate than the Bank exp.

- All in all, absent an uptick in wage growth over the coming months, the latest

leg lower in the unemployment rate, if maintained, is unlikely to have a major

impact on the trajectory of RBA MonPol in isolation.

- AUD/USD last $0.7125. Initial support at the October 11 NY low ($0.7091), with

initial resistance at Wednesday's intraday high ($0.7160).