The New Zealand Dollar soared on Tuesday and was trading more than 0.70 per cent stronger on Wednesday as well, with the pair reaching fresh three-month highs near 0.6780.
According to the latest data, the New Zealand unemployment level has notably improved in the third quarter and dropped to 3.9 per cent, which is way below the previous level of 4.5 per cent. Analysts had expected the unemployment rate to remain unchanged. The participation rate also improved to 71.1 per cent from 70.9 per cent previously.
Employment surged sharply to 1.1 per cent from 0.5 per cent in the previous quarter, but wage growth slowed, although marginally, to 0.5 per cent from 0.6 per cent previously quarter on quarter. The yearly change also slipped from 2.1 per cent to 1.9 per cent. The NZDUSD pair rose around 60 pips, or nearly 1 per cent after these numbers.
Investors may now shift their attention toward today’s Reserve Bank of New Zealand monetary policy decision, with the consensus expecting no changes today. Thus, the main rate may remain at 1.75 per cent.
However, the following statement might sound a bit hawkish, considering the recent positive developments in New Zealand, especially the strong labour market data. Should this happen, the Kiwi could continue its upward movement.
The next major resistance is at the 200-day moving average at 0.69, and as long as the pair trades above 0.6720, the outlook seems bullish.
Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or an investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2021 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.