The Kiwi dollar occupied the overnight events with an upbeat data. The GDT price index on the late Tuesday’s session and unemployment data on Wednesday’s early Asia session.
GDT price index- Overnight in the global dairy auction, prices have risen significantly to 2731$ tone. The average price jumps 12.7% vs 6.6$ rise.
Business Price Indexes, June 2016 quarter
Producer prices rose in the June 2016 quarter, due to higher fuel and electricity prices, Statistics New Zealand said today.”Despite the June quarterly increase in costs paid by fuel manufacturers, fuel prices have fallen by about half since mid-2012,” business prices manager Sarah Williams said.
Labour Market Statistics: June 2016 quarter
The unemployment rate decreased to 5.1 percent in the June 2016 quarter (from a revised 5.2 percent in the March quarter), Statistics New Zealand said today.
Compared with the March 2016 quarter, there were 58,000 more employed people (up 2.4 percent). However, part of this increase reflects improvements to the redeveloped HLFS alongside any real-world increase in employment this quarter.
This labour market statistics release includes data from the Household Labour Force Survey (HLFS)The HLFS was recently redeveloped, and the June 2016 quarter results are the first to be published from the new survey.
“The redeveloped HLFS presents a more-accurate and complete picture of the New Zealand labour market. The latest estimates are more in line with the current state of the labour force. However, comparisons with previous estimates will not always be straightforward and should be made with caution,” Mr Gordon said. Employment change comparisons will be clearer in the coming year as more data becomes available.
Post the jobs data the NZD spikes 40 pips but erased the gains quickly as the New Zealand government cautioned that the second quarter employment growth may be exaggerated.
As of now, this week the cross NZDUSD made high at 0.7320 remains lower than the previous week’s high seems at0.7345. The price has resistance seems at 0.7390 200Wema rounded to 0.74 levels. If the bulls settle above this, the price might retrace to 0.7460 and 0.7500 levels.