The NZD/USD pair is on the rise, hitting a two-week high during the European session on Wednesday. The New Zealand Dollar received a significant boost after the release of positive employment data, showing a 0.4% increase in the number of employed individuals in the second quarter. This exceeded market expectations and lowered the likelihood of an RBNZ rate cut, leading to a surge in the NZD/USD pair.
Additionally, Chinese trade data revealed a 7.2% YoY increase in imports for July, indicating robust domestic demand. The overall positive risk sentiment in the market further propelled the NZD/USD pair upwards. However, the strengthening USD, driven by rising US Treasury bond yields, could limit the gains. Geopolitical uncertainties also pose a potential risk factor for the pair’s performance.
Looking ahead, the US economic calendar is light for Wednesday, with US bond yields likely to influence USD price dynamics. The broader risk sentiment will also play a role in determining the NZD/USD pair’s trajectory. Keep an eye on New Zealand’s second-quarter inflation expectations data, scheduled for release during the Asian session on Thursday.
Economic Indicator: Employment Change
The Employment Change figure measures the variation in the number of employed individuals in New Zealand. A higher reading is considered bullish for the NZD, indicating positive implications for consumer spending and economic growth. The latest release showed a 0.4% increase, surpassing both consensus estimates and the previous quarter’s decline.
Last Release: Tue Aug 06, 2024 22:45
Frequency: Quarterly
Actual: 0.4%
Consensus: -0.2%
Previous: -0.2%
Source: Stats NZ
In summary, the NZD/USD pair is experiencing a bullish trend fueled by strong economic data from New Zealand and China. While the USD’s strength and geopolitical risks pose some challenges, the overall positive market sentiment is driving the pair higher. Keep an eye on upcoming data releases and market developments to make informed decisions regarding your finances and investments.