July US payrolls fell 23K versus 80K expected, pushing the dollar lower and lifting the New Zealand dollar amid reduced Fed tightening odds.
NZD/USD climbed 0.36% to 0.5890 after US Nonfarm Payrolls dropped 23K in July, missing forecasts of 80K jobs. Revisions subtracted another 103K from prior months, signaling a cooling labor market.
June payrolls were cut to 20K from 57K, and May to 63K from 129K. The unemployment rate dipped to 4.1%, while annual wage growth slowed to 3.2% from 3.4%. The data reinforced expectations of a softer Fed policy path.
Markets now price a 42% chance of a September Fed rate hike, down from 67% a week ago. Richmond Fed President Thomas Barkin noted stable corporate earnings despite weaker hiring trends.