New Zealand’s quarterly employment data released late yesterday saw the unemployment rate rise to 6.00%, in-line with the consensus estimates of economists and analysts. The quarterly employment change declined by -0.40%, below estimates of 0.40% and down from 0.10% in the prior reporting period. In a growing sign that the Reserve Bank of New Zealand will be forced to loosen monetary policy even further, the Global Dairy Trade Price Index experienced another sharp decline, falling -7.30%, after printing at -3.10% in the prior report. Weaker employment, inflation, and commodity prices will continue to weigh on the outlook, raising the specter of another interest rate cut before the end of the year and further accommodation in the first quarter of 2016. NZDUSD closed the session at 0.6663 and is likely to see further declines over the near-term.
Gold Declines Sharply Ahead of Yellen
Daily Analysis - 04/11/2015