New Zealand employment rose 0.8% qoq in Q2, much stronger than expectation of 0.3% qoq. Unemployment rate also dropped to 3.9%, down from 4.2% and beat expectation of 4.3%. That’s also the lowest rate since June 2008.
Wage growth was also positive. Average ordinary time hourly earnings rose 4.4% yoy, largest jump since 2009. Private sector average ordinary time hourly earnings increased 4.7% yoy. Public sector average ordinary time hourly earnings increased 3.5%.
NZD/JPY recovers after the release but upside is apparently capped by overall risk aversion in the markets. For now, some consolidations could be seen above 68.65 temporary low. But won’t expect a break of 38.2% retracement of 73.24 to 68.65 at 70.40. Break of 68.65 is expected sooner or later.