6 Nov 2013
Flash: NZ jobs hint at further NZD/USD upside - RBS
FXstreet.com (Barcelona) - New Zealand labour data reinforces the market belief that the country is in a path to strong growth, notes Greg Gibbs, FX Strategist at RBS.
Key Quotes
"The number of people in New Zealand employed rose 2.4%y/y, significantly above 1.6%y/y expected (Labour Force Survey), the highest annual growth since Q3-2006."
"The unemployment rate fell from 6.4% to 6.2% in Q3, reversing its rise from Q1 to Q2, taking this measure back to the low side of the range since 2009, but still significantly above full employment levels closer to perhaps 5%."
"Labour force participation rose 0.5% to 68.6%, a high since Q2-2012. An above average rate of participation that suggests further job gains should begin to the lower unemployment rate more significantly in coming quarters Annual wage inflation (Labour Cost Index) rose 1.6%y/y, down slightly from 1.7%y/y in Q2."
"The NZD/USD has broken above its range over the last week and appears to have upside potential."
"AUD/USD awaits its employment data tomorrow. It has yet to break the recent range, but risk appears upside in light of the recent stronger than expected AUD data. As discussed yesterday, we see expectations for the Australian employment data are modest compared to recent improvement in business surveys and stability in job vacancies."
Key Quotes
"The number of people in New Zealand employed rose 2.4%y/y, significantly above 1.6%y/y expected (Labour Force Survey), the highest annual growth since Q3-2006."
"The unemployment rate fell from 6.4% to 6.2% in Q3, reversing its rise from Q1 to Q2, taking this measure back to the low side of the range since 2009, but still significantly above full employment levels closer to perhaps 5%."
"Labour force participation rose 0.5% to 68.6%, a high since Q2-2012. An above average rate of participation that suggests further job gains should begin to the lower unemployment rate more significantly in coming quarters Annual wage inflation (Labour Cost Index) rose 1.6%y/y, down slightly from 1.7%y/y in Q2."
"The NZD/USD has broken above its range over the last week and appears to have upside potential."
"AUD/USD awaits its employment data tomorrow. It has yet to break the recent range, but risk appears upside in light of the recent stronger than expected AUD data. As discussed yesterday, we see expectations for the Australian employment data are modest compared to recent improvement in business surveys and stability in job vacancies."