It’s a busy week for New Zealand indicators. We’ll get a look at employment change and the unemployment rate later on Tuesday. These indicators are released on a quarterly basis, magnifying the impact of each release. On Thursday, New Zealand releases Inflation Expectations.
NZ Employment Change Looms
Analysts are braced for a soft Employment Change for Q2, which will reflect the impact of Covid-19 on the New Zealand economy, which included a lockdown in April. Employment Change is expected to decline by 2.0%, which would be the first losing quarter in over a year. The unemployment rate, which has hovered around the 4.0% level, is projected to jump to 5.6%. If these forecasts are within expectations, we could see the New Zealand dollar lose ground.
The New Zealand dollar has followed in the footsteps of its big brother, the Australian dollar. NZD/USD has climbed 10.7% since April 1, while AUD/USD is up 12.1%. Both currencies are in the risk category, which means that in times of crisis, investors would be favoring safe-haven assets. However, the US dollar is broadly lower, and the New Zealand dollar has jumped on the bandwagon. The kiwi has also been buoyed by the fact that New Zealand has successfully kept Covid-19 under control, while the virus remains unchecked in many parts of the US.
NZD/USD Technical
Hi! I am a robot. I just upvoted you! I found similar content that readers might be interested in:
https://www.marketpulse.com/20200804/nzd-usd-on-hold-ahead-of-nz-employment-data/