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AUD/NZD Surges Above1.0750 After The Upbeat Australian Employment Number
Australian Employment data supports AUD/NZD, focus on 1.07800 mark. Disappointing NZ GDP data weigh on the NZD, propelling AUD/NZD gains. Aussie employment number bolster 25 bps RBA hike for the next meeting.
Following the publication of Australia's Employment Change data for the month of February, the AUD/NZD exchange rate has increased by approximately 0.50%. The employment number exceeded expectations, with Employment Change coming in at 64.6K versus 48.5K expected and -11.5K previously. The unemployment rate decreased to 3.5% from the previous 3.7%. Full-time employment saw a significant surge to 74.9K from the previous -43.3K.
The positive jobs numbers, coming after two downbeat readings in December and January, will likely encourage the Reserve Bank of Australia (RBA) to implement an additional 25 basis points (bps) rate increase in their next meeting, despite signifying a hiatus thereafter.
In contrast, the Gross Domestic Product (GDP) data for the fourth quarter of 2022 in New Zealand came in worse than anticipated, with the quarterly reading at -0.6% compared to -0.2% from the previous 2% and the annual reading at 2.2% compared to 3.3% from the previous 6.4%.
The economic contraction was caused by stagnant consumption, a decline in real national total disposable income, and a lack of investment in the industrial sectors. The economic impact of cyclone Gabrielle is not included in this figure, which represents Q4 2022.
This growth data may cause the Reserve Bank of New Zealand (RBNZ) to reconsider its hawkish posture at its upcoming April 5 meeting. Despite many market forecasters anticipating a 25 bps rate hike from the RBNZ in April, the upside bias for AUD/NZD remains intact as economic data continues to diverge for both economies.
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