NZ labor market soft as unemployment seen rising to 5.4% – TD Securities
TD Securities expects New Zealand employment growth to slow to 0.1% q/q in Q2 and the unemployment rate to hit a cycle high of 5.4%, aligning with the RBNZ’s May outlook.
NZDUSD
TD Securities’ Australia/NZ macro team sees New Zealand employment growth at just 0.1% quarter-on-quarter in Q2, insufficient to keep pace with population gains. They forecast the unemployment rate will rise to 5.4%, matching the recent cycle high.
That would bring the labour market in line with the Reserve Bank of New Zealand’s May projections, according to the bank. The soft data could test market expectations for a near-term RBNZ rate hike, which TD notes remains in focus.
Source: FXStreet Forex News