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NZ employment numbers disappoint.

Written by Sam Coxhead on August 9th, 2012.      0 comments

11:10 AM (NZT) The just released 2nd quarter NZ employment numbers reveal a increased unemployment rate to 6.8% against an expectation of 6.5%. The number of people employed fell by 2,000 vs an expected 7,000 rise. The disappointing number immediately saw the NZ dollar give up ground against its trading partners, as can be seen on the table below . Against the AUD the consolidation through the support at .7730 (resistance 1.2930) does not bode well for the NZD in the short term.
The Australian Q2 Employment numbers are due out in 2.5 hours time and provide the next focus for the Australasian market.
The illiquid market conditions have continued this week with the northern hemisphere enjoying summer breaks. This has led for moribund markets for the most. However, periods of movement have continued to seen sporadically. One theme has been the continued pressure on the NZD. This has come following comments by PM John Key with regards to the relative strength of the NZ dollar. Interestingly, the RBA statement accompanying their unchanged monetary policy decision has added pressure to the NZD, with the AUD outperforming. This is material because the NZDAUD(AUDNZD) pairing is the most liquid of the NZD pairs, so often pressure can spill over when moves are made one way or the other for the pair.
The picture in Europe is calmer this week with the European yields remaining well below their recent peaks. This continued enthusiasm for the latest initiatives should continue to breed confidence, at least in the short term. The BOE inflation report points towards unusually uncertain growth prospects and the down ward revision of expectations of growth for 2012 and beyond. Correspondingly the inflationary pressure should be lower than previously expected. This opens up the way for further quantitative easing if deemed appropriate, although they have ruled out further easing to the cash rate in the short term.
          Past 24 hours
  Current level Pre-NZ Employ  % Chge since NZ Employ   Low High
NZD/USD 0.8122 0.8161 -0.48%   0.8110 0.8166
AUD/USD 1.0569 1.0575 -0.06%   1.0526 1.0585
NZD/AUD 0.7686 0.7716 -0.39%   0.7681 0.7732
AUD/NZD 1.3011 1.2960 0.39%   1.2933 1.3019
NZD/GBP 0.5186 0.5212 -0.50%   0.5183 0.5226
NZD/EUR 0.6561 0.6598 -0.56%   0.6549 0.6604
NZD/YEN 63.65 64.00 -0.55%   63.59 64.13
NZD/CAD 0.8079 0.8115 -0.45%   0.8072 0.8135
Topics: NZ Employment numbers