New Zealand unemployment rate dropped to 4.0% in Q4, down from 4.1%, better than expectation of 4.2%. However, participation rate also dropped to 70.1%, down from 70.4%. Employment was actually flat versus expectation of 0.3% growth. Labor cost index rose 0.6% qoq, unchanged from Q3, slightly better than expectation of 0.5% qoq.
NZD/USD has little reaction to the mixed job data. It’s now staying in consolidation from 0.6449 temporary low. There is no sign that the decline from 0.6775 has completed. Further fall is in favor as long as 0.6554 minor resistance holds, to 61.8% retracement of 0.6203 to 0.6755 at 0.6414.
Also, NZD/NSD is staying inside long term falling channel that started back in 2017 high at 0.75557. The down trend would extend to retest 2015 low at 0.6102.
