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NZ Dollar Jumps After Employment Data Beats Expectations

November 7, 2018 at 10:19 by Vladimir Vyun

Some coins on NZD notesThe New Zealand dollar jumped against all of its most-traded rivals today as employment data released in New Zealand overnight came out much better than was expected.

Statistics New Zealand reported that the unemployment rate dropped to 3.9% in the September quarter from 4.4% in the previous three months, whereas experts had predicted it to stay unchanged. Employment rose 1.1%, more than two times the forecast increase of 0.5%. The labor cost index rose by 0.5%, in line with expectations.

Released separately by the Reserve Bank of New Zealand, inflation expectations for the next two years remained at 2.0% in the December quarter, unchanged from the value in the previous quarter.

Now, traders wait for a monetary decision by the RBNZ that should be announced at 20:00 GMT today. Analysts do not expect the central bank to change its monetary policy, with the main interest rate staying at 1.75%. Therefore, market participants will focus on the wording of the statement, paying special attention to hints about possible interest rate cut.

NZD/USD traded at 0.6783 as of 10:08 GMT today after opening at 0.6737 and falling to the daily low of 0.6702. EUR/NZD rallied to the high of 1.7034 before returning to the opening level of 1.6950 later. NZD/JPY opened at 76.42, dropped to the daily low of 75.93, but rebounded to 76.63 later.

If you have any questions, comments or opinions regarding the New Zealand Dollar, feel free to post them using the commentary form below.

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