Baxia Markets News

NZD - Unemployment Rate

Written by Baxia Markets | May 6, 2021 3:53:15 PM

What is it? 

 

 

The unemployment rate is the percent of people who are able to work that do not have a job. When the economy is in decline and jobs are less available, the unemployment rate is expected to go up. When the economy is growing and jobs are available and being created, it can be expected for the unemployment rate to go down. 

 

 

What are the Expectations for the NZD Unemployment Rate Release?

 

 

Previously in February 2021 the unemployment rate was at 4.9%. The expectation for May 2021 is for the unemployment rate to be unchanged at 4.9%. Will that be the case?

 

 

What happens if...

 

 

We see an unemployment rate higher than 4.9%? If we are to see an increase in unemployment to, for example, 5.5%, then the NZD is expected to depreciate as a higher unemployment rate signals a weakening economy. 

 

 

What happens if...

 

 

We see an unemployment rate lower than 4.9%? In the situation we see a lower number, we can take that as a signal that the New Zealand economy is getting stronger. Naturally, this will mean that the NZD will increase in value versus other currencies.

 

 

We love to hear new ideas from traders and want to know what you think! 


If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.

 

 

 

 

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. 

 

Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.