5 Feb 2014
NZD/USD sees some choppiness after yesterday's strong rally
FXStreet (London) - The NZD/USD rally was supported overnight by strong jobs numbers. Fourth quarter unemployment data released by Statistics New Zealand showed a drop to 6.0 percent, the lowest joblessness rate since June 2009.
Employment up but wages remain steady
Over the December 2013 year, the number of people employed rose 3.0 percent in the Household Labour Force Survey (HLFS). Demand for workers from established businesses rose 1.9 percent in the Quarterly Employment Survey (QES).
Annual wage inflation, as measured by the labour cost index (LCI) salary and ordinary time wage rates, remained steady at 1.6 percent in the December 2013 quarter. Average ordinary time hourly earnings, as measured by the QES, rose 2.9 percent over the year – up from 2.6 percent in the September quarter.
Strong economy gives RBNZ space to hike rates
The NZD/USD pair saw an unbroken rally from USD0.8056 to a peak of USD0.8255 with a return of some risk appetite. The continuing Kiwi labour market strength will give RBNZ governor Graeme Wheeler the space to rein in the economy with his intended rate hike in April.
This morning has seen some choppiness, breaking down to USD0.8188 before recovering to its current price of USD0.8224, within touching distance of the opening USD0.8226 price.
Employment up but wages remain steady
Over the December 2013 year, the number of people employed rose 3.0 percent in the Household Labour Force Survey (HLFS). Demand for workers from established businesses rose 1.9 percent in the Quarterly Employment Survey (QES).
Annual wage inflation, as measured by the labour cost index (LCI) salary and ordinary time wage rates, remained steady at 1.6 percent in the December 2013 quarter. Average ordinary time hourly earnings, as measured by the QES, rose 2.9 percent over the year – up from 2.6 percent in the September quarter.
Strong economy gives RBNZ space to hike rates
The NZD/USD pair saw an unbroken rally from USD0.8056 to a peak of USD0.8255 with a return of some risk appetite. The continuing Kiwi labour market strength will give RBNZ governor Graeme Wheeler the space to rein in the economy with his intended rate hike in April.
This morning has seen some choppiness, breaking down to USD0.8188 before recovering to its current price of USD0.8224, within touching distance of the opening USD0.8226 price.