Breaking News

Forex - NZD/USD soars on employment data

ForexMay 08, 2013 09:43PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
Investing.com - The New Zealand dollar surged against the U.S. dollar during Thursday’s Asian session on the back of some strong employment data.

In Asian trading Thursday, NZD/USD rose 0.82% to 0.8472. The pair was likely to find support at 0.8340, the low of March 26 and cracked resistance at 0.8467, the session high.

That move higher came after Statistics New Zealand said in a report that the country’s employment rate rose 1.7% in the first quarter, easily topping analysts’ expectations calling for a 0.8%. New Zealand’s unemployment rate is now 6.2%, well below the 6.8% economists expected.

The jobs data helped the kiwi reclaim all of its post-intervention revelation losses. On Wednesday, Reserve Bank of New Zealand Governor Graeme Wheeler confirmed the central bank has been intervening in the forex market over the past month in an effort to weaken the kiwi.

In the RBNZ's May 2013 Financial Stability Report, Wheeler said developments in private sector credit and the housing market point to increasing risks to financial stability in New Zealand.

He also said that further price escalation will worsen the potential damage that could result from a housing downturn following an economic or financial shock.

Those comments prompted speculation RBNZ could cut interest rates at some point, though Thursday’s jobs report may give the central bank some room to hold off on rate cutting. RBNZ has previously said it wants to hold rates steady this year with an eye towards a rate hike in early 2014.

Elsewhere, AUD/NZD inched lower by 0.04% to 1.2100 while NZD/JPY rose 0.47% to 83.61.

Forex - NZD/USD soars on employment data

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Write your thoughts here
Replace the attached chart with a new chart ?
Post also to:
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email