New Zealand’s unemployment rate rose to 5.6% in Q2, exceeding forecasts and weighing on the Kiwi Dollar.
The New Zealand Dollar fell against the US Dollar, trading near 0.5875 in early Asian hours after data showed unemployment surged to 5.6% in the June quarter, the highest in a decade. The figure surpassed the 5.4% consensus and Q1’s 5.3% print.
Employment growth slowed to 0.5% in Q2 from 0.2% in Q1, while the participation rate edged up to 70.7%. Traders now await China’s services PMI for further direction.
The Kiwi faced immediate selling pressure on the jobs data, though potential Fed rate cut bets and a proposed Strait of Hormuz deal could limit USD gains.