New Zealand Dollar Surges to One-week Highs Vs Yen After Upbeat Jobless Rate
New Zealand dollar jumped to one-week highs versus its Japanese counterpart on Wednesday after the New Zealand’s jobless rate reportedly sank to an almost nine-year low in the third quarter while the yen was still under pressure amidst rising risk appetite.
The Kiwi soared by 1.23 percent against the Japanese Yen in European trading session on Wednesday, sending the pair NZDJPY to as high as 78.76 – the strongest level since October 24th. The New Zealand dollar was boosted after the Statistics New Zealand reported that the country’s unemployment rate dropped to 4.6 percent, which is the lowest since the fourth quarter of 2008.
The reading was lower than both a reading of 4.8 percent recorded in the previous quarter and analysts’ expectations of 4.7 percent. Meanwhile, jobs growth rate in the third quarter was reported to reach 2.2 percent, rebounding from a 0.1 percent decline in the second quarter.
The Reserve Bank of New Zealand (RBNZ) is scheduled to hold its monetary policy meeting on November 09th amid expectations that the central bank would keep rates on hold at a record low of 1.75 percent.
Turning to the Japanese Yen, the currency fell broadly versus its rivals as demand for safe-haven assets waned. Global shares jumped high on Wednesday in response to optimism about global economic growth after data showed that US consumer confidence in October surged to the strongest level in nearly 17 years while China’s Caixin manufacturing Purchasing Managers’ Index for October was in line with expectations.
The yen already lost ground on Tuesday, after the Bank of Japan left its monetary stimulus unchanged but lowered its inflation outlook.
Buy Stop at 78.800, Take profit at 79.300, Stop loss at 78.600