The Kiwi Dollar rallied strongly following the RBNZ’s announcement that the Official Cash Rate (OCR) would be cut 25bps to 2.50%. However, instead of the bears rushing in and causing a sharp depreciation, RBNZ Governor Wheeler’s statement suggested that any further policy action would be unlikely in the near term.

Australia, as released by Australian Bureau of Statistics (ABS), surprised markets to the upside in Nov, with the unemployment rate falling 0.1 pts to the lowest since May 2014 at 5.8% against 5.9% seen in Oct. Markets had predict the unemployment rate to tick higher to 6.0% last month.

While participation rate increased 0.3 pts to 65.3% compared to expectations of 65.04%.

Employment increased 71,400 to 11,900,600. Full-time employment increased 41,600 to 8,205,800 and part-time employment increased 29,700 to 3,694,800. Unemployment decreased 2,800 to 739,100. The number of unemployed persons looking for full-time work decreased 9,400 to 517,400 and the number of unemployed persons only looking for part-time work increased 6,600 to 221,700.

ABS noted in its release, “incoming rotation adding to strong employment rise”

Major events to lookout for today.

London Interbank Offered Rate (Libor), Swiss National Bank (SNB)

BOE : MPC Official Bank Rate Votes

BOE : Official Bank Rate

US : Unemployment Claims