Much stronger than expected AU labour.....>

AUSTRALIA: Much stronger than expected AU labour market data is supporting the

AUD and weighing on AU Bonds.

- The headline change in employed persons came in at +44.0K vs. MNI Median

+15.0K as full- and part-time employed numbers rose, with the unemployment rate

holding steady at 5.3% as exp. on the back of an uptick in the participation

rate to 65.7% from 65.5%.

- AUD/USD last ~$0.7195, after trading around $0.7175 heading into the print.

Bulls still need a close back above $0.7305/10 to alter the short term outlook

in their favour. The September 07 high ($0.7203) provides the initial point of

resistance. 

- The AU curve is holding flatter on the day, while the AU/U.S. 10-Year spread

has moved back to ~36.5bp as AU paper underperforms post labour market report.

The Bill strip trades a touch steeper last, with the contracts 1-3 ticks lower

on the day.