AUD/NZD May Resume Uptrend If N.Z. Jobs Miss Estimates: Analysis
Source: BFW (Bloomberg First Word)
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UUID: 7947283
(Bloomberg) -- AUD/NZD dip to 1.0845 on Monday may be the low for May should New Zealand’s unemployment rate due Wednesday fail to repeat the previous quarter’s return, writes Bloomberg strategist, Michael G Wilson.
Alert: HALISTER1- 1Q unemployment rate seen rising to 5.5% from 5.3% in 4Q 2015, according to median est. of 14 economists in Bloomberg survey; range: 5.4% to 5.7%, data due at 10:45am Wellington
- NOTE: Jobless rate had dropped to lowest since 1Q 2009 in the fourth quarter, surprising economists who had expected a rise
- An increase to 5.6% or more may bring pressure on NZD on expectations RBNZ may consider cutting rates
- NOTE: RBNZ says last week that it may cut rate; Deputy Governor Bascand says April 7 that stronger-than- expected labor supply is a factor for accommodative monetary policy
- AUD/NZD is trading at 1.0897, just below the 1.0900 100-DMA,
- Risk to view would be RBA cutting at today’s meeting
Source: BFW (Bloomberg First Word)
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UUID: 7947283