By CountingPips.com
The New Zealand dollar declined in forex trading as New Zealand employment data fell in the fourth quarter of 2009 and brought the unemployment rate to its highest standing in 10 years. New Zealand employment decreased by 0.1 percent in the October to December 2009 quarter to a total of 168,000 unemployed workers according to the report
The unemployment rate rose from 6.5 percent to 7.3 percent and marked its highest level since the second quarter of 1999. The rate increase surpassed market forecasts that were predicting the rate to level at 6.8 percent.
Employment had fallen by 16,000 workers in the third quarter for a 0.8 percent decline. On an annual basis, employment fell by 2.4 percent or 53,000 workers in the fourth quarter following an annual decrease of 1.8 percent in the third quarter.
The New Zealand dollar traded sharply lower versus the major currencies in the forex markets following the jobs report. The euro, U.S. dollar, Australian dollar, Canadian dollar and Japanese yen all increased to higher levels on the day against the kiwi.
The NZD/USD currency pair touched its lowest level in over 5 months and the NZD/CAD declined to its lowest level in over a month while the euro, Japanese yen and Australian dollar each reversed two day losing streaks versus the kiwi.
USD/NZD 30-Min Chart – The New Zealand Dollar dropping against the US Dollar today and accelerating lower after the jobs report. The NZD/USD pair touched its lowest trading level since the middle of September at the 0.6967 exchange rate after starting the week on a two day uptrend.
