NZD/USD Hit by Weak Unemployment Data
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NZD/USD Hit by Weak Unemployment Data

New Zealand’s reported disappointing employment figures for Q2 2012: employment dropped by 0.1%, when a gain of 0.3% was expected. Q1 saw a nice rise of 0.4%. And, the unemployment rate rose from 6.7% to 6.8%, much worse than a drop to 6.5% that was expected.  

NZD/USD reacted with an initial fall towards support but recovered later. The weak data could take its toll later on.

The drop in the unemployment rate comes despite a a drop in the participation rate, from 68.7% to 68.4%. The only good news is that full time unemployment rose by 0.8%, while part time unemployment fell by 3.4%.

The country publishes employment figures only once per quarter, making every release very important.

NZD/USD Falls and Recovers

NZD USD Falls After Weak Employment Data August 9 2012
NZD USD Falls After Weak Employment Data – Click image to enlarge

The publication sent NZD/USD from 0.8160 to 0.8110, just above the 0.8105 support line. At the time of writing it is back to 0.8130. Earlier in the week, the pair already crossed the 0.8195 line and topped at 0.8222.

The kiwi, like the Aussie, enjoyed strong momentum in recent months. Is the kiwi losing momentum?

Australian employment figures for July exceeded expectations, but weren’t amazing.

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.