New Zealand Dollar prints new high after Nonfarm Payrolls
Whilst the headline NFP figure showed the economy adding 275K jobs in February, which was higher than the 200K expected, the other data in the BLS report suggested weaknesses in the labor market.
Average Hourly Earnings, which are a key component of inflation, rose by a lower-than-expected 4.3% YoY and 0.1% MoM. Both were below the 4.4% and 0.3% predicted. The Unemployment Rate, meanwhile, rose to a higher-than-expected 3.9% when it had been projected to stay put at 3.7%.
The data suggests less inflationary pressure from wages and low unemployment, which could prompt the Fed to bring forward interest rate cuts to earlier in the year. Lower interest rates are negative for the US Dollar as they reduce foreign capital inflows.
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