New Zealand is scheduled to print its jobs data, yo! Can its labor market sustain its momentum?
Here are events you should watch if you’re planning on trading Kiwi this week.
Quarterly labor market reports (Feb 6, 10:45 pm GMT)
Strong numbers peppered New Zealand’s Q3 2018 labor market data, which helped Kiwi gain intraday pips against its major counterparts.
For starters, the unemployment rate dropped from a downwardly revised 4.4% to 3.9%, which marks the lowest since Q2 2008. Wowza!
It also helped that the rate of employment clocked in its highest rate on record while the labor force participation rate picked up and average hourly earnings maintained its pace from the previous quarter.
This week, analysts expect the Q4 2018 reports to reflect a bit of pullback from the previous quarter’s jumps.
Specifically, the unemployment rate is expected to jump back to 4.1%, participation rate could slip from 71.1% to 71.0%, and the pace of employment could drop to 0.3%.
Will the good times roll for New Zealand’s labor market? The reports have mostly surprised to the upside in the last ten releases, so it’s possible that we’ll see continued strength from this week’s numbers.
Overall risk sentiment
As mentioned in last week’s price recap, the lack of top-tier reports made Kiwi a puppet to global risk sentiment.
If you recall, the comdoll lost pips on China’s weak data releases and concerns over the U.S.-China trade war.
All that changed when the fire nation attacked. Or at least when the FOMC printed its decision. From then on, we saw high-yielding currencies kick butt and mostly maintain its momentum until the end of the week.
Over the next couple of days, major catalysts like the RBA and BOE’s policy decisions, Fed members’ speeches, updates on the U.S.-China trade negotiations, and Brexit headlines could affect the Kiwi’s price action.
Make sure you’re around when the headlines hit!
Missed last week’s price action? Read NZD’s price recap for Jan. 28 – Feb. 1!