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New Zealand loses jobs – NZD/USD falls

Employment change in New Zealand showed a decline of 0.4% in Q3, much worse than a gain of the same scale that was expected. The  unemployment rate rose to 0.6% as expected. The labor cost index also disappointed with an advance of only 0.4%.

NZD/USD  was trying to recover before the publication, creeping up to 0.67, but it fell immediately to the lows of the day at 0.6650.

More data: the unemployment rate would have fallen much had it not been for the participation rate that dropped by 0.5% to 68.8%. While this was expected, it skews the drop in employment. Year over year, employment advanced 1.5%, also worse than predicted.

Support awaits at 0.6615, followed by 0.65. Resistance awaits at 0.6720 and then 0.6790.

Beforehand, the bi-weekly Global Dairy Trade showed a plunge of 7.4%, the second consecutive fall. Milk prices are apparently also vulnerable to the slowdown.

The RBNZ kept the ranges unchanged at 2.75% but certainly expressed its desire for a weaker currency. In addition, markets expect a resumption of the rate cuts beginning next month.

Here is the chart, showing the drop, the gradual rise and the plunge of the NZ$.

NZDUSD November 4 2015 falling employment

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.