NZD Weakens AS Unemployment Hits Fresh 9-Year High

Thursday, 05^th Nov, 2009, 10:15 GMT

The NZD has lost ground against all the major traded currencies as unemployment in NZ rose to its highest level in the last 9-years. The belief was that the NZD would gain momentum later this week, but it suffered a major setback when the unemployment data was released thus, weakening the NZD. The unemployment doubled from -0.9% to -1.8% on YOY basis for the third quarter moving the rate from 6.0% earlier to 6.5%, its highest level since the year 2000.
The NZD has the same fluctuations as AUD, so the resultant impact can be seen on AUD as well, with Reserve Bank Governor, Allan Bollard, already warning financial markets to see changes between AUD and NZD. The difference between the two currencies has to be seen by the investors and financials; otherwise, it could result in a loss of their money which would ultimately hinder the growth of the NZD economy, which is trying to recover from the worst recession post World War-II. NZD is currently trading at 0.7195 against the Greenback, down -0.61% from yesterday’s close