5 Nov 2013
Flash: New Zealand jobs next, what to expect? - RBS
FXstreet.com (Barcelona) - At 5.45GMT, New Zealand publishes its latest labour data, with the numbers being impotant to establish near term direction in the Kiwi. According to Greg Gibbs, FX Strategist at RBS, "we see upside risk NZD."
Key Quotes
"Participation increased in Q1 and Q2 in New Zealand to 68% in Q2, up from 67.3 in Q4-12, a sign of a strengthening labour market, suggesting workers are encouraged by job prospects to return to the work force."
"The unemployment rate ticked up in Q2 from 6.2 to 6.4%, after falling in the previous two quarters from a long term high at 7.3% in Q3-12. Unemployment is still up from record lows in early 2008 of 3.4%, and normal levels perhaps around 5%, suggesting there is still considerable slack in the labour market and room for unemployment to fall further, and every reason to expect it will in Q3, perhaps to a new cycle low. The market median expectation is for it to fall back to the recent low of 6.2%."
Key Quotes
"Participation increased in Q1 and Q2 in New Zealand to 68% in Q2, up from 67.3 in Q4-12, a sign of a strengthening labour market, suggesting workers are encouraged by job prospects to return to the work force."
"The unemployment rate ticked up in Q2 from 6.2 to 6.4%, after falling in the previous two quarters from a long term high at 7.3% in Q3-12. Unemployment is still up from record lows in early 2008 of 3.4%, and normal levels perhaps around 5%, suggesting there is still considerable slack in the labour market and room for unemployment to fall further, and every reason to expect it will in Q3, perhaps to a new cycle low. The market median expectation is for it to fall back to the recent low of 6.2%."