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- NZD/USD is under pressure as the US dollar bounces back.
- Unemployment data will be an important feature on the NZ calendar.
NZD/USD is down o the day by some 1.17% with the price falling from a high of 0.6343 to a low of 0.6253. The greenback has picked up a safe haven bid relating to tensions surrounding Taiwan between the US and China.
”The Kiwi is lower this morning, having been sideswiped by a resurgence in the USD amid a stiff rise in US interest rates that was, in turn, fuelled by a plethora of hawkish comments by Fed officials, the essence of which was: inflation is still too high, it may not have turned, and the Fed’s job is far from done,” analysts at ANZ Bank said.
”Whether that vibe is enough to bring about another more sustained bout of USD strength remains to be seen, but markets have certainly been very “glass half full” on both the US economy and the inflation/Fed hikes threat, and that wiped a few percent off the USD DXY last month.”
Looking ahead of the day, domestically, New Zealand’s labour market will be important. The analysts at ANZ bank, who are calling for a 2.8% unemployment rate, say the ”data can be volatile, but if they beat expectations, that could see the NZD beat peers amid USD strength.”