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NZD/USD falls after New Zealand unemployment rate jumps
The unemployment rate rose to 5.6% in the second quarter, the highest level since 2015, shifting expectations toward a more cautious Reserve Bank of New Zealand.
The New Zealand dollar weakened against the US dollar, with NZD/USD trading around 0.5860, down 0.54% on the day, after softer-than-expected New Zealand employment data, FXStreet reported.
Statistics New Zealand showed the unemployment rate increased to 5.6% in the second quarter from 5.3% previously, above market expectations of 5.4%, marking the highest level since 2015. At the same time, employment change rose 0.5% in the quarter, up from 0.2% previously, and the participation rate climbed to 70.7% from 70.4%.
FXStreet said the larger-than-expected rise in unemployment reduces the case for further monetary tightening by the Reserve Bank of New Zealand and leaves investors reassessing the policy outlook, which weighed on the NZD.
The article also cited near-term technical levels for NZD/USD, noting the pair was capped below the 100-hour simple moving average near 0.5872 and below a resistance line around 0.5896, while support sits near 0.5860 and then around 0.5849. It added that markets are now looking ahead to upcoming US data, including the ADP Employment Change report and the ISM Services PMI, before Friday's official US employment report.