Employment change in New Zealand showed a decline of 0.4% in Q3, much worse than a gain of the same scale that was expected. The unemployment rate rose to 0.6% as expected. The labor cost index also disappointed with an advance of only 0.4%.
NZD/USDÂ was trying to recover before the publication, creeping up to 0.67, but it fell immediately to the lows of the day at 0.6650.
More data: the unemployment rate would have fallen much had it not been for the participation rate that dropped by 0.5% to 68.8%. While this was expected, it skews the drop in employment. Year over year, employment advanced 1.5%, also worse than predicted.
Support awaits at 0.6615, followed by 0.65. Resistance awaits at 0.6720 and then 0.6790.
Beforehand, the bi-weekly Global Dairy Trade showed a plunge of 7.4%, the second consecutive fall. Milk prices are apparently also vulnerable to the slowdown.
The RBNZ kept the ranges unchanged at 2.75% but certainly expressed its desire for a weaker currency. In addition, markets expect a resumption of the rate cuts beginning next month.
Here is the chart, showing the drop, the gradual rise and the plunge of the NZ$.
