NZDUSD Fundamental Analysis – 8-August-2024

The New Zealand dollar remained around $0.599 (NZD/USD), staying close to its highest point in over two weeks. This stability comes after recent reports showed New Zealand’s unemployment rate rose, but not as much as experts predicted.

Employment Growth and Wage Trends

In addition to the favorable unemployment data, the country’s employment levels increased. However, wage inflation has been slowing down for the fifth straight quarter. This suggests that while more people are getting jobs, their wages are not increasing as quickly as before.

Traders Adjust Rate Cut Expectations

Because of these mixed signals, traders have adjusted their expectations regarding the Reserve Bank of New Zealand’s next moves. Previously, there was almost certainty about a rate cut next week. Now, only 60% of traders believe a rate cut will happen on August 14th, a significant drop from the near 100% certainty earlier in the week.

• Also Read: AUD/USD Fundamental Analysis – 8-August-2024

Impact of the US Dollar and Global Factors

On the international front, a weaker US dollar has also helped the New Zealand dollar. Investors are closely watching the US jobless claims data due later today, especially after last Friday’s weak jobs report raised concerns about a potential recession in the US.

Conclusion: Stability Amid Uncertainty

The New Zealand dollar is strong due to better-than-expected local employment data and global economic factors. While there is still some uncertainty about future interest rate cuts, the overall outlook for the Kiwi remains positive for now.

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