Daily Market Digest: New Zealand, UK Employment Data, FOMC Minutes

Market Summary

• New Zealand employment change rises more than expected
• New Zealand unemployment rate falls to 5.10% in Q2, 2016
• UK claimant count change, beats forecasts, unemployment at 8-year low
• Dollar lifted following NY Fed Dudley’s hawkish comments
• Traders await FOMC meeting minutes due later today

Today’s Economic events

• New Zealand employment change q/q 2.40% vs. 0.60%
• New Zealand PPI Input q/q 0.90% vs. 0.50%; PPIT Output q/q 0.20% vs. 0.20%
• New Zealand unemployment rate 5.10% vs. 5.30%
• Australia MI leading index m/m 0.10% vs. -0.20% previously
• Australia wage price index q/q 0.50% vs. 0.50%
• UK average earnings index 3m/y 2.40% vs. 2.50%
• UK claimant count change -8.6k vs. 5.2k
• UK unemployment rate 4.90% vs. 4.90%

Coming up:

• (CL_6U) Crude oil inventories
• (USD) FOMC Member Bullard speech
• (USD) FOMC meeting minutes

New Zealand unemployment rate falls to 5.10% in Q2

New Zealand’s jobless rate in the second quarter of 2016 was recorded at 5.10%, data from Statistics New Zealand showed on Wednesday. The unemployment rate of 5.10% missed forecasts of 5.30% and improved from a revised 5.20% unemployment rate from Q1 (previously reported at 5.50%). Employment growth jumped 2.40% in the reported quarter and was seen 4.50% higher compared to a year ago. However, the sharp jump in the employment growth was due to self-employed persons being accounted for in the labor force as well. Many analysts have remained skeptical on the Q2 report. Nick Tuffley from ASB said that the changes to the Household Labor Force Survey make it difficult to compare with past data. “As such, we cannot read into the Q2 results any implications about the strength of the economy or implications for the interest rate outlook,” he said.

 

New Zealand Q2 Unemployment Rate – 5.10%

The labor participation rate also improved, rising 0.90% in the reported quarter to 69.70% with an increase in the hours worked as well.