Australian dollar hits parity with its Canadian counterpart as rate outlook diverges

The kiwi NZD=D3 eased 0.2% to $0.5718, having retreated from a one-week top of $0.5749 overnight. Having slid over 4% from its August peak, the technical set-up is still bearish as it struggles to bounce off an 11-week low of $0.5695.

Hawkish comments from Reserve Bank of New Zealand chief Anna Breman have helped nudge up bets of a third rate hike this year to 3% next month at 75%, but interest rates there are still lower than in many other developed economies.

Against the US dollar, the Aussie AUD=D3 was flat at $0.7113, having slipped 0.1% overnight. It faces resistance around $0.7140 and has support at $0.7075.

All eyes are on the jobs data on Thursday where forecasts are centred on a rise of 20,000 jobs in August, with the unemployment rate holding steady at 4.5%.