The New Zealand dollar weakened today as New Zealand employment unexpectedly fell last quarter even though the unemployment rate significantly dropped. But that does not necessary mean that the currency has lost its attractiveness.
Employment fell 1 percent in the fourth quarter of 2012, while an increase by 0.4 percent was expected. At the same time, the unemployment rate fell 0.4 percentage point to 6.9 percent. Traders paid more attention to the negative side of the data and the NZ dollar weakened. Yet some analysts believe that the report does not reflect the broader picture of the New Zealand economy, which is good in a good shape, and the currency is attractive after it has become cheaper.
NZD/USD fell from 0.8391 to 0.8361 as of 11:48 GMT today. NZD/JPY traded at 78.45, falling a little from the opening of 78.55, but rebounding from the daily minimum of 77.97.
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