The favorable unemployment report seems to support the New Zealand dollar against the greenback. The jobless rate of New Zealand in the three months ended March fell to 4.7 percent from 4.9 percent in the previous quarter, and compared with forecasts of 5.6 percent. The participation rate increased to 70.4 % from previous record of 70% and from forecast of 72%. The number of unemployed people fell by 5000 as the economy gained 15,000 jobs during the quarter, the majority of which were taken by women.
Economists hope that numbers showed the labour market was stronger than expected and there were signs wage growth would pick up over the year.
“Nonetheless, the labour market still has some way to go, with the rate of unemployment still above pre-pandemic levels and the underutilisation rate also elevated,” ASB senior economist Jane Turner said.
On the other hand, As per the latest news, US Treasury Secretary Janet Yellen said interest rates may have to rise to prevent the US economy overheating as President Joe Biden ramps up public spending. But the Economists who follow the Fed said it wasn’t clear whether Ms Yellen was referring to short-term interest rates, which the central bank controls, or longer-term rates determined by economic conditions.
Elsewhere, US President Joe Biden on Tuesday made a announcement of a goal to vaccinate 70per cent of US adults with at least one Covid-19 shot by the July 4 Independence Day holiday and said the government would innoculate 12- to 15-year-olds as soon as allowed.
He had previously announced July 4 as a target date for Americans to gather in small groups to celebrate the holiday and signal a return to greater normalcy in the middle of the pandemic. Biden’s new goal takes into account an increasing, though not unexpected, challenge of getting shots into the arms of people who are hesitant about the vaccine. The comments from the US president creates hopes among the investors.
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