Following the release of data on consumer inflation expectations, the Australian dollar (AUD) climbed against the New Zealand dollar (NZD). It stayed at 4.6 percent this month, compared to 3.6 percent the previous month.
The Melbourne Institute’s Consumer Inflation Expectation survey reveals consumer expectations for future inflation in the coming year. The higher the standards, the more solid the impact on the likelihood of a rate hike by the RBA will be. As a result, a high perusing should be good or bullish for the AUD, whereas a low perusing should be negative or bearish.
On the other side, the Australian Bureau of Statistics (ABS) released the unemployment rate on November 22, 2021. The FXStreet.com registered it at 5.2% in October compared to month before data of 4.6%.
Total civilian labour force divided by total jobless employees is the measure of unemployment rates. If the rates are raised, it implies that the Australian labour market is not expanding. As a result, a surge causes the Australian economy to suffer. For the AUD, a drop in the figure is favourable (or bullish).
The pair has been dropping over the past month, as shown in the graph below. Unless there is a strong reversal, it is very likely that the pair will continue to fall.
Selling the AUD/USD pair may be a better idea for a short term position. However, it may get a reversal of around 1.0709 and start declining again.