The New Zealand dollar rose steadily by an impressive 126 pips to the intraday high of 0.6609 from 0.6483 following the release of the better than expected New Zealand 4th quarter jobs data. The yen fell modestly in Europe which gave additional impetus to the new zealand dollar prompting NZDJPY to rise to the intraday high of 79.10 from 77.80 (+130 pips)
The New Zealand 4th quarter Unemployment Rate fell to +5.3% versus the median estimate of 6.1%. The Employed rose to +0.9% Q/Q versus the median estimate of +0.8%, while the Labor Participation rate was +68.4% versus the median estimate of +69.0%.
The Reserve Bank of New Zealand Governor Wheeler's statement was less dovish than expected, which added to the buoyance of the new zealand dollar. Although the governor repeated his rhetoric that further monetary policy may be needed over 2016. Most of the economic risk is on the downside, Wheeler also said he condemns "Inappropriate fixation on Headline CPI."
The New Zealand Assistant Governor McDermott will talk about Forward Guidance tomorrow at 22:30 GMT.