Global macro overview for 02/08/2017:
The data from New Zealand job market surprised the global investors. According to Statistics New Zealand, the Unemployment Rate has dropped from 4.9% to 4.8% (lowest level since December 2008), but the Employment Change decreased to -0.2% in the second quarter, while the market participants expected only 0.7% decline after the 1.1% increase in the previous quarter. "The fall in unemployment over the quarter came primarily from 10,000 fewer women being unemployed. This pushed the female unemployment rate down 0.8 percentage points to 4.9%, the lowest unemployment rate for women since the March 2009 quarter. The male unemployment rate rose by 0.5 percentage points, or 7,000 men, to 4.7% in the June 2017 quarter " said Statistics New Zealand statement. The participation Rate slid from 70.6% to 70.0% and Private Wages were unchanged at the level of 0.4%.
It was the first time in two years when the employers were shedding jobs in New Zealand. Despite slightly weaker than expected figures, this was the seventh consecutive quarter of employment gains, which is a good indicator of the robust pace of expansion of the New Zealand economy. The weakness in wage growth likely reflects that there is still ample levels of labor market slack within the New Zealand economy at present.
Let's now take a look at the NZD/USD technical picture at the H4 timeframe. The market has bounced from the golden trend line support around the level of 0.7400 and currently is trying to test the nearest technical resistance at the level of 0.7460. Any further deterioration below the level of 0.7398 will likely trigger a deeper correction.
