- The NZD/USD has difficulty capitalizing on a modest intradic rebound towards a maximum of more than two weeks.
- The mixed employment data in New Zealand and a modest rebound of the USD eclipsan commercial optimism.
- The operators now wait for the crucial FOMC decision before opening new directional positions.
The NZD/USD pair goes back after a rebound in the Asian session towards the area of ​​0.6020-0.6025, or more than a maximum of two weeks, and for now, there seems to have interrupted a three-day winning streak. Cash prices fall below the psychological level of 0.6000, reaching a new daily minimum in the last hour in the middle of a combination of negative factors.
The feeling of global risk receives a strong impulse after the announcement of commercial conversations between the US and China in Switzerland this week. In addition, New Zealand labor statistics slightly better than expected, which show that the unemployment rate remained stable in 5.1% in the first quarter of 2025 compared to the forecast of a small additional increase, provided a modest impulse to the NZD/USD torque.
Additional details revealed that the number of people used increased by 0.1% after a 0.2% drop in the previous quarter. The initial market reaction, however, turns out to be short -lived, since the small increase in employment and a continuous slowdown in salary growth keep the door open to additional cuts of interest rates by the New Zealand Reserve Bank (RBNZ), potentially up to 2.75% by the end of the year.
Expectations were further reaffirmed with the latest RBNZ financial stability report, which highlighted concerns that commercial turbulence has increased downward risks for internal economic growth. Apart from this, a modest rebound of the US dollar (USD) exerts some downward pressure on the NZD/USD torque. However, USD bulls could choose to wait for the result of a two -day FOMC meeting.
The Federal Reserve (FED) is scheduled to announce its decision later this Wednesday, although the market approach will be in the policy declaration that accompanies it. In addition, the comments of the president of the FED, Jerome Powell, at the press conference after the meeting will be analyzed in search of clues about the trajectory of feat cuts. This, in turn, will influence the USD demand and will provide a new impulse to the NZD/USD.
Economic indicator
Unemployment rate
The unemployment rate that publishes Statistics New Zealand It is the number of unemployed between the active population. If the rate grows, this indicates a decrease in the growth rate within the New Zealand labor market. As a result a rise in the rate indicates a weakening of economic activity. A result lower than expectations is bullish for the New Zealand dollar, while a superior result is bassist.
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Last publication:
May May 06, 2025 22:45
Frequency:
Quarterly
Current:
5.1%
Dear:
5.3%
Previous:
5.1%
Fountain:
STATS NZ
Statistics New Zealand Releases Employment Data On A Quarterly Basis. The Statistics Shed a Light on New Zealand’s Labor Market, Including Unemployment and Employment Rates, Demand for Labor and Changes in Wages and Salaries. These employment indicators tend to have an impact on the country inflation and reserve bank of new zealand’s (rbnz) Inte interest A Better-Than-Expected Print Coul Turn Out To Be Nzd Bullish.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
