Trading the News: New Zealand Employment Change
Updates to New Zealand’s Employment report may spur a rebound in NZD/USD[1] as job growth is expected to increase 3.6% per annum in the second-quarter of 2018 versus the 3.1% expansion during the first three-months of the year.
Signs of a stronger labor market may put pressure on the Reserve Bank of New Zealand (RBNZ)to alter the forward-guidance for monetary policy at the next meeting on August 8, and Governor Adrian Orr & Co. may start to change their tune later this year as ‘ongoing spending and investment, by both households and government, is expected to support growth.’
In turn, a positive development may spark a bullish reaction in the New Zealand dollar as it encourages the RBNZ to lift the official cash rate (OCR) off of the record-low, but a set of below-forecast prints may fuel the recent weakness in NZD/USD as it casts a weakened outlook for the economy. Sign up and join DailyFX Currency Analyst David Song LIVE[2] for a broader discussion on current themes and potential trade setups!
Impact that the New Zealand Employment report has had on NZD/USD during the last release
|
Period |
Data Released |
Estimate |
Actual |
Pips Change (1 Hour post event ) |
Pips Change (End of Day post event) |
|
1Q 2018 |
05/01/2018 22:45:00 GMT |
3.3% |
3.1% |
-2 |
