The Kiwi Loses Ground Versus the Aussie After Upbeat Australian Job Data

The Australian dollar surged to more-than-two-week highs against its New Zealand counterpart on Thursday after the kiwi fell in Asia following weaker-than-expected first quarter GDP while data on Australian job market came in well above expectations.

The New Zealand dollar weakened after the Statistics New Zealand reported GDP for the first quarter rose only 0.5 percent, missing the 0.7% gain anticipated by the economists. On a yearly basis, GDP rose 2.5 percent, also below the 2.7% expected.

Meanwhile, Australian Bureau of Statistics said the country’s unemployment rate dropped sharply in May. According to the reported released earlier in the day, Australian jobless rate fell to a lower-than-expected seasonally-adjusted 5.5 percent last month from 5.7 per cent in April. Economists had expected the unemployment rate would remain unchanged at 5.7 per cent in May.

The number of people employed jumped sharply by 42,000, easily topping analysts’ forecast for 10,000 rise. Particularly, the number of people in full-time work added 52,100 in May, offsetting a decline of 10,100 jobs in part-time work. Since January, the economy has added around 150,000 new jobs, the ABS said.

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