Trading the News: New Zealand Employment Change
Updates to New Zealand’s Employment report may undermine the recent recovery in NZD/USD[1] as job growth is expected to increase 2.0% after expanding 3.7% per annum in the second-quarter of 2018.
Signs of slowing employment is likely to keep the Reserve Bank of New Zealand (RBNZ) on the sidelines as ‘downside risks to the growth outlook remain,’ and the central bank may carry the record-low cash rate into 2019 as ‘consumer price inflation is expected to gradually rise to our 2 percent annual target as capacity pressures bite.’
In turn, another set of mixed data prints may spark a bearish reaction in the New Zealand dollar[2], but a positive development fuel the rebound in NZD/USD as it puts pressure on Governor Adrian Orr & Co. to lift the official cash rate (OCR) off of the record-low. Sign up and join DailyFX Currency Analyst David Song LIVE[3] for an opportunity to discuss potential trade setups.
Impact that New Zealand Employment has had on NZD/USD during the last quarter
|
Period |
Data Released |
Estimate |
Actual |
Pips Change (1 Hour post event ) |
Pips Change (End of Day post event) |
|
2Q 2018 |
07/31/2018 22:45:00 GMT |
3.6% |
3.7% |
-17 |
-28 |
2Q 2018 New Zealand Employment Change
