By Cecile Lefort and Ian Chua
SYDNEY/WELLINGTON, Oct 15 (Reuters) - The Australian dollar edged up on Thursday following a mixed jobs report, while its New Zealand counterpart powered to three-month highs as investors pared wagers on a near-term rate cut.
The Aussie firmed to $0.7320 by midday after rising as high as $0.7345 earlier in the session. Resistance was found at the two-month peak of $0.7382 set on Monday.
It briefly dropped a quarter of a cent after data showed a fall of 5,1000 in jobs in September against forecasts for a gain of 5,000. Unemployment was stable at 6.2 percent, versus expectations of a slight increase to 6.3 percent.
"Most recent indicators have turned in the same direction, suggesting that demand for labour has picked up over the course of the year. Today's number does not derail that theory," said Michael Turner, a strategist at RBC Capital Markets.
He said the report would have limited impact on the Reserve Bank of Australia (RBA)'s interest rate policy as he does not see the labour market as the driving force for rates, at least in the medium term.
The RBA is expected to keep rates at a record low of 2.0 percent at its next meeting on Nov. 3. Interbank futures pricing 0#YIB: give an around 50-50 chance of an easing by December and is nearly fully priced for a move early next year.
The kiwi dollar hovered at multi-month highs against the dollar and its Australian counterpart, as the market reassessed the likelihood of a fourth cut in interest rates this month.
Some traders said comments by Reserve Bank of New Zealand Governor Graeme Wheeler on Wednesday suggested the bank might pause this month.
While Wheeler reiterated that further easing seemed likely depending on the data, he also noted recent economic indicators have been more encouraging. Wheeler further said the bank needed to have sufficient capacity to cut rates if the global economy slowed significantly.
The kiwi rose to a three-month peak of $0.6846 NZD=D4 , from $0.6800 early, to be up nearly 2 percent for the week.
Against the Aussie, it was at NZ$1.0744, having peaked at NZ$1.0718 - a high not seen since early June.
New Zealand government bonds rose, sending yields 12.5 ticks lower at the long end of the curve.
Australian government bond futures were split, with the three-year bond contract off 3 ticks at 98.200. The 10-year contract added 3 ticks to 97.4100, while the 20-year contract was up 4 ticks to 96.8900.