The New Zealand Dollar soared on Tuesday and was trading more than 0.70 per cent stronger on Wednesday as well, with the pair reaching fresh three-month highs near 0.6780.
According to the latest data, the New Zealand unemployment level has notably improved in the third quarter and dropped to 3.9 per cent, which is way below the previous level of 4.5 per cent. Analysts had expected the unemployment rate to remain unchanged. The participation rate also improved to 71.1 per cent from 70.9 per cent previously.
Employment surged sharply to 1.1 per cent from 0.5 per cent in the previous quarter, but wage growth slowed, although marginally, to 0.5 per cent from 0.6 per cent previously quarter on quarter. The yearly change also slipped from 2.1 per cent to 1.9 per cent. The NZDUSD pair rose around 60 pips, or nearly 1 per cent after these numbers.
Investors may now shift their attention toward today’s Reserve Bank of New Zealand monetary policy decision, with the consensus expecting no changes today. Thus, the main rate may remain at 1.75 per cent.
However, the following statement might sound a bit hawkish, considering the recent positive developments in New Zealand, especially the strong labour market data. Should this happen, the Kiwi could continue its upward movement.
The next major resistance is at the 200-day moving average at 0.69, and as long as the pair trades above 0.6720, the outlook seems bullish.
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