Investing.com – The New Zealand dollar was lower against its U.S. counterpart on Thursday, after a rise in the country's fourth quarter unemployment rate dampened expectations for a medium term interest rate increase.
NZD/USD hit 0.7708 during late Asian trade, the pair’s lowest since January 31; the pair subsequently consolidated at 0.7727, dipping 0.05%.
The pair was likely to find support at 0.764, the low of January 26 and resistance at 0.7823, Wednesday’s high and a ten-week high.
Statistics New Zealand said the seasonally adjusted unemployment rate rose to 6.8% in the fourth quarter from a revised 6.4% in the third quarter. Analysts had expected the unemployment rate to increase to 6.5% in the quarter.
Employment fell by 0.5%, or 11,000 jobs, from the third quarter, when it climbed a revised 1.1%, the report showed. Analysts had predicted a 0.2% increase. From a year earlier, employment rose 1.3%.
Also Thursday, New Zealand’s Finance Minister Bill English said he would prefer to see a lower New Zealand dollar to help the nation's export-led recovery, but that New Zealand's best defense is to increase its competitiveness.
The kiwi was also lower against the euro, with EUR/NZD slipping 0.03% to hit 1.7854.
Later in the day, the U.S. was to publish its weekly report on initial jobless claims as well as data on labor costs, productivity and factory orders. In addition, the Institute of Supply Management was to publish its non-manufacturing PMI.
Also Thursday, the chairman of the Federal Reserve, Ben Bernanke was to speak at a public engagement.
NZD/USD hit 0.7708 during late Asian trade, the pair’s lowest since January 31; the pair subsequently consolidated at 0.7727, dipping 0.05%.
The pair was likely to find support at 0.764, the low of January 26 and resistance at 0.7823, Wednesday’s high and a ten-week high.
Statistics New Zealand said the seasonally adjusted unemployment rate rose to 6.8% in the fourth quarter from a revised 6.4% in the third quarter. Analysts had expected the unemployment rate to increase to 6.5% in the quarter.
Employment fell by 0.5%, or 11,000 jobs, from the third quarter, when it climbed a revised 1.1%, the report showed. Analysts had predicted a 0.2% increase. From a year earlier, employment rose 1.3%.
Also Thursday, New Zealand’s Finance Minister Bill English said he would prefer to see a lower New Zealand dollar to help the nation's export-led recovery, but that New Zealand's best defense is to increase its competitiveness.
The kiwi was also lower against the euro, with EUR/NZD slipping 0.03% to hit 1.7854.
Later in the day, the U.S. was to publish its weekly report on initial jobless claims as well as data on labor costs, productivity and factory orders. In addition, the Institute of Supply Management was to publish its non-manufacturing PMI.
Also Thursday, the chairman of the Federal Reserve, Ben Bernanke was to speak at a public engagement.