Market Spotlight: NZD Soars On Data Beat

New Zealand Employment Data Beats ExpectationsThe New Zealand Dollar is moving firmly higher today on the back of a strong set of employment releases overnight. The headline unemployment rate was seen falling back to 4% from the prior month’s 4.6% reading, well below the 4.4% figure projected. On a quarter basis, the employment change indicator recorded a 1% result, up from the prior month’s 0.6% and the 0.7% forecast. Additionally, the country’s labour cost index was seen rising 0.9% on the quarter, up from 0.4% last quarter and above the 0.7% forecast.This latest set of positive data has further fuelled expectations of an imminent rate hike from the bank. Following the RBNZ recently announcing that QE is set to end their monthly asset purchases from September, the market is now looking for the next step along the pathway to policy normalisation. With August 18th scheduled as the next policy review, NZD is likely to remain supported over the coming weeks.Technical ViewsNZDUSDThe rally in NZDUSD has seen price reversing higher off the .6933 floor. Price is now fast approaching the .7110 level, with the bear channel top sitting just above. This is will be a key challenge for bulls, with a break higher here opening the way for a run up to the .7315 level next, in line with bullish MACD and RSI.

from Tickmill Expert Blog - Forex Traders Blog https://www.tickmill.com/blog/market-spotlight-nzd-soars-on-data-beat"
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