New Zealand Dollar Reverses Lower As Jobless Rate Jumps Sharply
Feb, 01st 04:25
New Zealand dollar fell for the first time in three days against its American counterpart on Wednesday, after data on the country’s labor market showed the jobless rate rose unexpectedly last quarter.
According to the Statistics New Zealand, unemployment rate advanced to 5.2% in the three-month period to December from 4.9% in the previous quarter. The result contrasted with economists’ median estimate which expected a drop to 4.8%.
The increase in jobless rate was due to the fact that more people sought work than could find jobs. Participation rate jumped to record 70.5%, surpassing economists’ forecast of 70.2%. Meanwhile, employment increased 0.8% in the quarter, also topping consensus estimate of a 0.7% gain.
The U.S. dollar, however, stabilized after its worst month since March as investors awaited a Federal Reserve policy decision due later on the day.
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