June US Nonfarm Payrolls missed forecasts at 57K, reducing Fed rate hike bets and lifting the New Zealand Dollar.
NZD/USD climbed 0.21% to 0.5710 on Friday, driven by a weaker US Dollar after June Nonfarm Payrolls grew just 57K, well below the 110K estimate. The report dampened expectations for further Federal Reserve tightening, with markets now pricing a lower chance of a September rate hike.
China’s services PMI edged down to 54.1 in June from 54.4 in May but remained in expansion territory, supporting the Kiwi amid strong trade links. ASB Bank revised its RBNZ outlook, now expecting no July hike and a gradual tightening cycle starting in September, targeting 3.25% by early 2027.
US markets were closed for Independence Day, likely capping trading volumes and limiting immediate reactions.