The Reserve Bank of New Zealand and the NZD lost ground against the USD today amidst the retention of the 3.5% interest rate.
The big news today is going to be released today at 11am Sydney time when we find out if Australia truly managed to fight unemployment numbers away from record highs at 6.4%. Analyst are not certain here but are certain we will see and employment change into positive territory but not likely at 12.0K as forecasted.
Australia is currently battling with youth unemployment as the nation moves out of an era of entitlement according to the Finance Minister Joe Hockey and a new era of work for the welfare schemes are expanded.
But as always Australian data tends to coincide with data coming out of China and the AUD takes direction from its trading partners performance. China will be posting CPI and PPI data simultaneously and analysts are expecting grim numbers. Any negativity in China data usually has a bearish effect on the AUD.
So before you go long or short on the AUD make sure to consider both Chinese and Australian data – and in that order.
We never recommend speculative trading.