NZD/USD Daily Fundamental Analysis for May 06, 2011 |
New Zealand’s currency strengthened after a government report showed employers added more jobs than expected, suggesting a recovery was underway before the February earthquake dented growth.
Today's fundamentals proved what the Reserve Bank governor said about jobless rate that is beating expectations. It seems that conditions in the nation's labor sector became more stable from where it would start improving more to solve a major problem for the New Zealand economy.
Falling unemployment and a record-low benchmark interest rate may help restore confidence and lift spending and investment later this year.
The New Zealand economy is sending positive signs, and this report tells us that the economy was gathering steam before the earthquake.
The New Zealand economy won't release any fundamentals on Friday, while the United States of America, will release the anxiously awaited labor data as the speculation is growing over the outlook for growth and pace of the recovery. Starting with the non-farm payrolls at 12:30 GMT, it is expected to show that the U.S. economy has added 196 thousand jobs during the month of April compared with the previous reading of 216 thousand jobs.
Unemployment for April is expected to settle at 8.8% while the yearly average hourly earnings index is expected to rise by 1.7%.
Any improvement in new jobs in the United States could drive the dollar to rise temporarily before benefiting kiwi on the improvement in the risk appetite. Downbeat figures and weak employment will feed the fears over the outlook for growth and power the dollar to extend its gains.
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