New Zealand unemployment rate rose to 4.3% in Q3, up from 4.0%, notably higher than expectation of 4.1%. Looking at the details, labor force participation rate dropped -0.1% to 70.9%. Employment rate dropped -0.4% to 67.8%. Total labor force rose 12k but there was only 2k growth in the number employed Annual wage inflation accelerated by 0.1% to 1.9%.
NZD/USD extended this week’s sharp fall after the release and hit as low as 0.6751 so far. Rebound from 0.6551 should have completed at 0.6941 after rejection by 0.6969 resistance. Further fall would be seen to 0.6706 support next. Break will pave the way 0.6424/6551 support zone.
As 0.6424 is seen as a medium term bottom on bullish convergence condition in daily MACD, attention should be paid to bottoming signal inside 0.6424/6551 zone.
