- No surprises from New Zealand employment data.
- Kiwi remains without significant changes.
- The focus of operators in the US presidential elections
NZD / USD climbed to 0.6711 on New Zealand’s third quarter labor market numbers, but quickly returned below 0.6700. The pair is trading at 0.6690, validating Tuesday’s gains, supported by a weak dollar.
The greenback remains under some downward pressure, amid optimism in stocks on US presidential election day Less pessimism about the economic implications of the election result has stimulated demand for the shares on Tuesday, favoring the assets associated with more risk, including the NZD.
After data from New Zealand, attention turns to the US.
ANZ analysts said the labor market has deteriorated with the rise in the unemployment rate and very weak job growth, and with wage inflation slowing from already low levels. They estimate that the photo will get even worse given the stagnation of the economic recovery, although they acknowledge that the numbers could have been much worse.
The economic report implied a look of a few minutes away from what is happening in the US, which is where the key is for the next few hours. Voting is coming to an end in the first states. The volatility in the market could increase as the results are released.
A clear winner of the election would be a positive factor, while if there is a great parity between Trump and Biden, it could generate fear in investors, driving demand for the dollar.
Credits: Forex Street
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