June 21, 2024

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AUD/NZD forecast by Invezz.com after Australian jobs data and New Zealand budget

AUD/NZD forecast by Invezz.com after Australian jobs data and New Zealand budget

AUD/NZD forecast Australian jobs data and New Zealand budget

Invezz.com – The exchange rate fell to 1.0624, its lowest level since May 11 after the latest Australian employment data and New Zealand PPI data. That’s down more than 2.7% from this month’s high.

Australian Job Numbers

Very important AUD news That came to light on Wednesday when the Australian Bureau of Statistics released the latest Wage Price Index data. The report showed that WPI rose 0.8% in the first quarter, below the average estimate of 0.9%. This increase is 3.7% year-on-year.

WPI is one of the most important statistics that the Reserve Bank of Australia (RBA) looks at when making its decision. Minutes published earlier this week show the bank believes wage growth is too high. This explains why it decided to raise rates by 0.25% this month.

The AUD/NZD exchange rate reacted to Australia’s latest employment data. According to the ABS, the country’s unemployment rate rose to 3.7% from 3.5% in April. Economists had expected the rate to remain unchanged.

The participation rate increased to 66.7%, and the economy lost more than 4.3 thousand jobs during the month. Despite this, the Australian economy is doing well, and labor shortages persist in many industries.

The other catalyst for the AUD/NZD pair is the latest PPI data from New Zealand. According to the statistics agency, the producer price index fell 0.2% in the first quarter and the PPI output fell 0.3%. PPI is a good measure of inflation.

New Zealand also released its national budget, which showed a worse than expected budget deficit. It hopes to return to budget surplus by 2027. Additionally, the government expects the unemployment rate to rise to 5.3% by the end of the year.

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AUD/NZD Forecast

Chart by TradingView

The AUD to NZD exchange rate has fallen in recent weeks. On the 4-hour chart, it has moved below the 50-period exponential moving averages, while the RSI is just above the oversold level. Also, the exciting oscillator has moved below the neutral point.

Therefore, the AUD/NZD pair is likely to continue falling as sellers target the next key support at 1.1.0590, the low point on April 5.

AUD/NZD Forecast After Australian Jobs Data and New Zealand Budget appeared first on Invezz.

This article was originally published by Invezz.com