NZ Dollar Attempts to Rise After Surprise Growth of Employment

The New Zealand dollar attempted to rally today following a surprisingly positive employment report that showed that New Zealand unexpectedly added jobs last quarter. The currency has retreated against some of its rivals by now but managed to keep gains versus others.
Statistics New Zealand reported that the number of employed New Zealanders increased by 0.7% in the March quarter, seasonally adjusted, versus expectations of a 0.2% decline. Year-on-year, employment grew by 1.6%. The unemployment rate increased from 4.0% to 4.2% but was still below the consensus forecast of 4.4%. Wage inflation in the private sector was at 0.3%, missing market expectations of 0.5%.
Yesterday, several reports were released. A report from Statistics New Zealand revealed that the number of building consents plunged by 21.3% in March after rising by 5.7% in February. The ANZ World Commodity Price Index fell by 1.1% in April after declining by 2.0% in March. The GlobalDairyTrade Price Index fell by 0.8% after sinking 4.2% on the previous reporting period.
Meanwhile, markets continue to watch developments in the US-China conflict over the origins and handling the coronavirus that originated in China and spread across the world, causing a global pandemic. US President Donald Trump claims that the virus came from the Chinese laboratory studying viruses due to mishandling. China vehemently denies such claims, while the World Health Organization and the top US epidemiologist Anthony Fauci say that there is no evidence that the virus was man-made. The spat between the world’s two biggest economies can throw a wrench into the process of global economic recovery after the pandemic subsides.
NZD/USD was up from 0.6049 to 0.6073 intraday but backed off to 0.6404 by 9:54 GMT today. EUR/NZD declined from 1.7900 to 1.7862. NZD/JPY went down from 64.41 to 64.18, pulling back from the daily high of 64.62. GBP/NZD dropped from 2.0567 to 2.0481.

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