New Zealand Employment unexpectedly fell, down 0.3 percent in the second quarter from the three months through March. The Unemployment Rate soared to 6.8 percent – the second-highest reading after the decade-high 7.1 percent reading recorded in the fourth quarter of last year.
The New Zealand Dollar slumped against all of its major counterparts after the data crossed the wires, with the result forcing traders to pare back rate hike expectations. Indeed, a Credit Suisse gauge of the priced-in rate hike outlook shows investors now see a 64 percent chance of another increase in September – down 10 percentage points from yesterday – while an index tracking the one-year forecast fell 9bps to the lowest in 13 months.
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