The New Zealand Dollar gains 0.3% ahead of Q2 employment figures, with unemployment expected to edge higher to 5.4%.
NZD/USD climbed 0.3% to 0.5886 on Wednesday, recovering from recent losses as risk sentiment improved and the US Dollar softened. The pair rebounded after reports suggested progress in reopening the Strait of Hormuz, easing geopolitical tensions affecting risk-sensitive currencies.
New Zealand’s second-quarter labor market report is the immediate focus. Economists forecast the unemployment rate to rise to 5.4% from 5.3%, while employment growth is expected to slow to 0.1% quarter-on-quarter from 0.2%. The participation rate previously stood at 70.4%.
US data releases, including ADP employment figures and ISM Services PMI, will also influence market expectations ahead of Friday’s Nonfarm Payrolls report. Fed Governor Lisa Cook is scheduled to speak later in the session.