- New Zealand’s Unemployment Rate for 2Q comes in at 5.6% vs. 5.8% Expected; 6.0% Prior
- Employment Rose By 0.4% Q/Q for 2Q vs. 0.7 Expected; 0.9% in the Prior Quarter
- The New Zealand Traded Lower Against the US Dollar After the Report Was Released
The New Zealand Dollar moved lower after the island nation released its Employment report for the second quarter of this year. The headline unemployment rate came in at 5.6 percent, the lowest since the first quarter of 2009. This came below expectations of 5.8 percent and a prior quarter figure of 6.0 percent. Total employment rose by 0.4 percent, lower than the expected 0.7 percent and 0.9 percent from the prior quarter. This rise in employment was the lowest since the first quarter of 2013. The participation rate also noted a decline, falling to 68.9 percent from the expected figure of 69.3 percent and prior quarter’s 69.2 percent.
The Kiwi likely fell because of the disappointing employment figures, further delaying interest rate hike expectations from the RBNZ, which had earlier reported a temporary pause in increasing its official cash rate. The benchmark 10-year New Zealand government bond yields fell after the release of the report.
NZDUSD [15 mins 08/05/2014]. Chart created using FXCM Marketscope.