The Takeaway:NZD Employment Change (QoQ) (4Q) > -1.0% versus +0.4% expected, from -0.4% (Q3) > NZDUSD BEARISH
In the December 2012 quarter, the New Zealand employment rate decreased by 0.8 percentage points. This is the third consecutive quarter the employment rate has dropped. The number of people employed decreased by 23,000 (down 1.0%). Bloomberg analysts expected a +0.4% increase for employment change. The Household Labour Force survey showed a 0.4 percentage point decline in unemployment rates to 6.9%. The number of people unemployed decreased by 10,000 (down 6.0%).
NZDUSD 1-Minute Chart: February 6, 2013
Chart from FXCM Trading Station, created by Courtney Edwards
The NZD is selling across the board at the disappointing employment change rate. Prior to the release, the pair seemed to regain stability during overnight trading. However, the NZDUSD once again turned negative falling 20 pips to hit a session low of 0.8411 during European trading. The pair continued to trade in the mid-84 range. The NZDUSD is now at session lows around 0.8340.
--- Written by Courtney Edwards, DailyFX Research
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