New Zealand Dollar Fell as Labor Data Led to RBNZ Rate Cut Bets

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The Kiwi Dollar dropped 0.6 percent against its US namesake as a set of disappointing labor statistics from New Zealand crossed the wires. Unemployment in the third quarter met the consensus forecast at 6 percent – 0.1 percentage points higher than the previous reading. This marks the highest level since June of 2014. The quarter-over-quarter employment change posted its first net loss in three years with a -0.4 percent trim in payrolls. The year-over-year pace of employment growth slowed to a pace of 1.5 percent versus the 2.5 percent expected and 3.0 percent clip previously. This represents the slowest growth rate in two years. Furthermore, the participation rate reached its lowest point in over a year at 68.6 percent and wage growth slowed to 0.4 percent.

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