AUD/NZD refreshes four-day high at 1.0970 on downbeat NZ Employment data – Crypto News – Crypto News
Connect with us
NZD/USD re-tested YTD lows around 0.6060 post-upbeat US economic data, ahead of NFP NZD/USD re-tested YTD lows around 0.6060 post-upbeat US economic data, ahead of NFP

others

AUD/NZD refreshes four-day high at 1.0970 on downbeat NZ Employment data – Crypto News

Published

2 years ago

on

  • AUD/NZD has refreshed its four-day high at 1.0970 as NZ Employment has missed estimates.
  • A decline in labor demand and higher jobless rate might trim inflation projections in the NZ region ahead.
  • The Australian Dollar remained extremely volatile this week following the release of the downbeat Retail Sales data.

The AUD/NZD pair has printed a fresh four-day high at 1.0970 in the early Asian session. The cross has gained strength after the release of downbeat New Zealand Employment (Q4) data. The Employment Change dropped to 0.2% from the expectations of 0.3% and the earlier release of 1.3%. While the Unemployment Rate has increased to 3.4% from the consensus and the prior release of 3.3%.

Signs of losing threads in the tight labor market of New Zealand indicate that inflation projections will trim further as retail demand may get dented. Meanwhile, the Labor cost index has remained mixed, which will still be a concern for the Reserve Bank of New Zealand (RBNZ) ahead. The quarterly labor cost index has landed at 1.1% lower than the estimates of 1.3% but similar to the prior release of 1.1%. On an annual basis, the economic data has remained in line with the expectations of 4.3% and higher than the 3.8% the prior release.

The interest rate hike spells by the RBNZ Governor Adrian Orr is not paused yet as the Consumer Price Index (CPI) is still beyond 7%. However, lower employment generation might trim inflation projections ahead.

On the Australian front, the Australian Dollar has picked up strength on upbeat S&P Global Manufacturing PMI data. The economic data has climbed to 50.0 vs. the consensus and the former release of 49.8. This week, the Australian Dollar remained extremely volatile following the release of the downbeat monthly Retail Sales (Dec) data. Lower retail demand might force the firms to look for easing prices of goods and services at factory gates. This would also delight the Reserve Bank of Australia (RBA) ahead.

For further guidance, the New Zealand Dollar and the Australian Dollar will dance to the tunes of the Caixin Manufacturing PMI (Jan) data, which is seen higher at 49.5 from the earlier release of 49.0. It is worth noting that the Antipodeans are the leading trading partners of China.

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending