- AUD/NZD has refreshed its four-day high at 1.0970 as NZ Employment has missed estimates.
- A decline in labor demand higher jobless rate might trim inflation projections in the NZ region ahead.
- The Australian Dollar remained highly volatile this week after the release of the downbeat Retail Sales data.
The AUD/NZD pair printed a fresh four-day high at 1.0970 in the early Asian session. The cross strengthens after the release of downbeat New Zealand Employment (Q4) data. The Employment Change dropped to 0.2% from the expectations of 0.3% and the former release of 1.3%. While the Unemployment Rate has increased to 3.4% from the consensus and the prior release of 3.3%.
Signs of losing threads in the tight labor market of New Zealand indicate that inflation projections will trim further as retail demand may get dents. Meanwhile, the Labor cost index has remained mixed, which will still be a concern for the Reserve Bank of New Zealand (RBNZ). The quarterly Labor cost index has landed at 1.1% lower than the estimates of 1.3% but similar to the prior release of 1.1%. On an annual basis, the economic data has remained in line with the expectations of 4.3% and higher than the 3.8% the prior release.
The interest rate hike spell by the RBNZ Governor Adrian Orr is not paused yet as the Consumer Price Index (CPI) is still beyond 7%. However, lower employment generation might trim inflation projections ahead.
On the Australian front, the Australian Dollar has picked strength on upbeat S&P Global Manufacturing PMI data. The economic data has climbed to 50.0 vs the consensus and the former release of 49.8. This week, the Australian Dollar remained extremely volatile after the release of the downbeat monthly Retail Sales (Dec) data. Lower retail demand might force the firms to look for easing prices of goods and services at factory gates. This would also delight the Reserve Bank of Australia (RBA) ahead.
For further guidance, the New Zealand Dollar and the Australian Dollar will dance to the tunes of the Caixin Manufacturing PMI (Jan) data, which is seen higher at 49.5 from the former release of 49.0. It is worth noting that the antipodeans are the leading trading partners of China.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD tumbles to breach 0.6500 as poor China's PMI offsets upbeat Aussie data

AUD/USD is seeing intense selling pressure and breaches 0.6500 after the Chinese NBS Manufacturing PMI sank further into contraction in May. Investors shrugged off hot Australian inflation data and strong Construction Work figures amid resurfacing China economic worries.
EUR/USD battles 1.0700 as China worries lift the US Dollar

EUR/USD is testing 1.0700, retreating from near the 1.0740 region in Wednesday's Asian trading. Dismal China's NBS Manufacturing PMI and pre-US debt deal vote anxiety reinstate the US Dollar's safe-haven appeal. US/ German data, Fedspeak and House vote in focus.
Gold: Bear Cross confirmation to threaten 100 DMA support again Premium

Gold price is fading the previous rebound above the $1,950 mark, as the United States Dollar (USD) is seeing a fresh uptick amid a risk-on market profile. Attention now turns toward the House of Representatives vote on the US debt deal.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC bulls recovery plan targets $30,000 as bears exhaust

Bitcoin price action slows down, allowing bears to doubt their strength. As more time elapses, the chances of bulls taking over control of BTC become more likely. A spillover effect, should buyers make a comeback, would be noticeable in Ethereum and Ripple prices.
Debt ceiling deal keeps dollar locked in devaluation spiral

Fiscal hawks weren't optimistic when Kevin McCarthy was elected Speaker of the U.S. House. The California Republican's track record was dismal when it comes to spending restraint. Nearly 5 months into his term, it is now apparent McCarthy has no intention of holding the line against government expansion.