NZ: Surprise drop of 0.2% in employment - Rabobank

Today has already seen NZ Q2 employment data, which recorded a surprise drop of 0.2% q-o-q vs. expectations of a 0.7% rise, although the headline unemployment rate stayed at 4.8%, notes Michael Every, Senior Asia-Pacific Strategist at Rabobank. 

Key Quotes

“Moreover, average hourly earnings were also somewhat weaker than expected at 0.4% ex-overtime in the private sector and 0.8% q-o-q for the whole economy. That triggered a slump in NZD from 0.7470 all the way back to 0.7420 before we got some consolidation. Not to worry though: the NZX was up 0.4% at time of writing to 7,759, so they are closer to getting new “NZX 8,000!” baseball caps of their own.”