The Australian economy added 28,900 jobs in December, nearly three times the consensus expectation of 10,000. The unemployment rate also fell to 5.1 per cent, a nine-month low, from 5.2 per cent.
On the negative side, full-time jobs actually fell by 300 with part-time roles increasing by 29,200. The November figures were also revised down slightly and the participation rate was unchanged at 66 per cent.
Economists had regarded the jobs numbers as a crucial input to the Reserve Bank of Australia's decision at its next meeting on February 4. ANZ Bank today changed its forecast from a 25 basis point cut in the cash rate, currently at 0.75 per cent, to no change.
"Aussie employment data is a minefield of details," said Mike Shirley, a dealer at Kiwibank. "It's terrible trying to navigate it when it's all coming at you" but the market chose to react to the headline unemployment rate, he said.
The Australian dollar was trading at about 68.36 US cents immediately before the data was released and then shot up to 68.76 cents, maintaining its strength for the rest of the NZ trading day.
Against the greenback, the domestic currency was little changed at 65.88 US cents from 65.90 cents late yesterday, while the trade-weighted index was at 72.29 points from 72.49.
Shirley said fears about the spread of the coronavirus have abated, at least for now, following decisive action by Chinese authorities which have shut down travel to and from Wuhan, a city with a population of more than 11 million where the virus is believed to have originated.
The casino mecca of Macau recorded its first case and promptly cancelled its Lunar New Year celebrations, according to a Hong Kong television station.
Shirley said the market is awaiting an official statement from the World Health Organisation expected tomorrow. "It looks like there are significant steps being taken to contain it."
At 5pm today, the New Zealand dollar was trading at 50.17 British pence from 50.54 late yesterday, at 59.43 euro cents from 59.46, at 72.20 yen from 72.49 and at 4.5588 Chinese yuan from 4.5470.
The two-year swap rate edged up to a bid price of 1.2119 per cent from 1.1969 yesterday, while 10-year swaps fell to 1.6200 per cent from 1.6225.
