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6 May 2015
NZ jobs not that soft, market wants to sell Kiwi
FXStreet (Bali) - While NZ jobs data came on the soft side, the details of the report suggest the data was not as bad as it may look at first glance.
The NZ unemployment rate higher than expected mostly due to upward revisions to population growth, with the increase in labour participation to a new record high supporting that view. Moreover, employment growth figures on a yearly basis were quite strong, coming at 3.2%.
On the flip side, wages number were subdued against what the RBNZ said in last OCR, when stated "it would be appropriate to lower the OCR if demand weakens, and wage and price-setting outcomes settle at levels lower than is consistent with the inflation target."
The bottom line, judging by the reaction of the Kiwi to the data, is that the market is seeking for excuses to sell NZ Dollars at the moment, with last week's change of rhetoric by the RBNZ - easier rather than easing - another factor that is undoubtedly contributing to exacerbate NZD pain.
The NZ unemployment rate higher than expected mostly due to upward revisions to population growth, with the increase in labour participation to a new record high supporting that view. Moreover, employment growth figures on a yearly basis were quite strong, coming at 3.2%.
On the flip side, wages number were subdued against what the RBNZ said in last OCR, when stated "it would be appropriate to lower the OCR if demand weakens, and wage and price-setting outcomes settle at levels lower than is consistent with the inflation target."
The bottom line, judging by the reaction of the Kiwi to the data, is that the market is seeking for excuses to sell NZ Dollars at the moment, with last week's change of rhetoric by the RBNZ - easier rather than easing - another factor that is undoubtedly contributing to exacerbate NZD pain.