The New Zealand dollar rallied today, getting help from surprisingly positive domestic macroeconomic reports. Basically all economic data was good and even better than expected.
Inflation expectations for the next two years were at 1.7% in the December quarter, virtually unchanged from the September quarter. The number of jobs rose by 1.4% in the September quarter from the previous three months, more than two times the forecast increase by 0.6%, as employment growth continued to outpace population growth. The unemployment rate unexpectedly fell from 5.0% to 4.9% (while experts had predicted an increase to 5.1%), falling below the 5.0% for the first time since 2008. The GlobalDairyTrade Price Index jumped 11.4% at yesterday’s auction.
NZD/USD jumped 1.2% from 0.7205 to 0.7294 as of 15:43 GMT today. EUR/NZD dropped from 1.5333 to 1.5230.
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