Will The New Zealand Job Market Keep Flourishing? NZD Could Retain Upside Potential Gain.

The New Zealand Unemployment rate is the percentage of the total workforce in New Zealand that is unemployed and actively seeking employment during the previous month. 

Its impact is indicative of the economic outlook because the number of people employed is an important signal of the overall economic health, and consumer spending is highly correlated with labor-market conditions.

The New Zealand economy is a strongly advanced free market economy ranked 63rd-largest in the world purchasing power parity (PPP) and 52nd-largest national economy by nominal GDP. What opened the core that made the nation great is strongly tied to productivity gain, strong institutions, and robust economic fundamentals. Unfortunately, the recession hit dragged the economy down and disrupted the job market growth flow.

However, a strong rebound from the downturn is experienced across several economic sectors following reopening. Lately last year, the employment rate report published came out positive with a 0.3% upside growth from the previous level. This report sent the New Zealand dollar higher as the market keeps regaining its footstool.

According to a report from Wellington lately in 2021, New Zealand’s gross domestic product (GDP) declined by 3.7%, giving one of the biggest declines on record in the pandemic hit. The positive is that recovery in 2022 is at a fast pace and the economy keeps signalling wage growth becoming stronger. Its purchasing manager’s index remains at 53.7, indicating industry expansion, and its unemployment rate remains relatively low at 3.4% with the market forecasting further decline towards 3.3%. These metrics could stand as strong drivers for New Zealand’s upside potential gain as the job market flourish.

Regardless, traders should brace themselves up for a period of high volatility as the Unemployment report often have a great impact on the FOREX market. A decrease in Unemployment Rate will usually strengthen the NZD (New Zealand Dollar), while the increase in Unemployment Rate will usually weaken the NZD (New Zealand Dollar).

Traders should always be aware that volatile markets provide great opportunities for making profits, as the increase in volatility can cause market swings for traders to capitalize on. 

The currency pairs that include the NZD (New Zealand Dollar) are mostly affected by the data release. The pairs include: NZDUSD, AUDNZD, EURNZD, GBPNZD, NZDCAD, NZDJPY etc.

Sign up with ACT brokers( https://secure.actmarkets.com/register/today for more insightful, informative, and educative forex analysis that will help propel you into becoming a profitable trader.

Time Schedule for the next New Zealand Unemployment Rate Report: 

Date: Tuesday. 1st February, 2022. 

Time: 10:45pm (GMT + 1).


Author:
Amogo Solomon is a Forex Dealer / Global market analyst and writer in ACT Brokers with a background in Computer Science, Data Analytics and Forex Dealing. He specializes in Forex Dealing, Global market strategies, Forex fundamental and technical analysis, and Monitoring of Forex trends, Stocks, Equities, Cryptos, and Commodities. He possesses strong technical and analytical skills and is well known for his entertaining and informative analysis of the global economy, fiat currency, commodities, Stocks, Indexes, Futures, and Options markets. He held a Bachelor's degree in Computer Science and Nanodegree in Programming for Data Science Enterprise.

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