New Zealand quarterly unemployment rate rises in Q4 2016
The quarterly unemployment rate in New Zealand released during the overnight session showed an increase to 5.2% in the three months ending December. This was higher than forecasts of 4.8%, which would have been an improvement from Q3's unemployment rate of 4.9%. The New Zealand dollar was seen retreating from the two-month high of $0.7349 earlier today.
New Zealand’s unemployment rate in the fourth quarter increased by 0.3 points to rise to 5.2%, which was higher than expected
But on the positive, the data reflected a stronger than expected growth in the labor force participation, which is a measure of the percentage of people looking for work. The employment and the hours worked also posted strong growth during the quarter, beating expectations. However, wage inflation remained muted as expected.
Employment rose 0.8% while the number of hours worked increased 1.3%. The data from Statistics New Zealand showed that full time employment jumped 1% over the quarter, with employers reporting a 1.2% lift in the number of hours.
The mixed report on jobs sent the Kiwi lower in the early trading hours during the Asian session. The currency also came under pressure with key economic releases from the U.S. coming up later today which includes the ADP payrolls report, ISM Manufacturing PMI and the FOMC meeting.
How to trade binary?
NZDUSD is biased to the downside, but the support at 0.7264 will need to be cleared on the 4-hour chart. In this case, the kiwi could be in for stronger declines towards 0.6972 at the very least. However, the Stochastics is currently pointing down to the oversold level which could indicate a bounce to the upside.
Therefore, purchase daily PUT options either at 0.7300 - 0.7280 or below 0.7200 for a 21:00 GMT expiry.
Target price: 0.7300
Expiry: 21:00 GMT