NZD/USD clings to upbeat jobs data-inspired gains to over two-week high, around 0.6000

NZD/USD catches aggressive bids in reaction to the upbeat employment details.
The momentum gets an additional boost after the release of Chinese trade data.
A positive risk tone also benefits the Kiwi, though a stronger USD might cap gains.

Haresh Menghani FXStreet

The NZD/USD pair builds on its strong intraday gains and climbs to over a two-week high heading into the European session on Wednesday, with bulls now building on the momentum beyond the 0.6000 psychological mark.

The New Zealand Dollar (NZD) rallied hard following the release of better-than-expected employment details, showing that the number of employed people increased by 0.4% in the second quarter. The reading was better than the 0.2% decline registered in the previous quarter and market expectations. Adding to this, the unemployment rate rose less than consensus estimates, to 4.6% from 4.4% during the January-March quarter. The upbeat data lowered the likelihood of a rate cut by the Reserve Bank of New Zealand (RBNZ) and prompted aggressive short-covering around the NZD/USD pair.

Meanwhile, Chinese trade data released this Wednesday showed an unexpected surge in imports, by the 7.2% YoY rate in July, which suggested that domestic demand remains resilient. This, along with a generally positive risk tone, pushes the NZD/USD pair higher for the second successive day. It, however, remains to be seen if bulls can capitalize on the move amid a goodish pickup in the US Dollar (USD) demand, bolstered by a further recovery in the US Treasury bond yields. Moreover, geopolitical risks could cap the optimism in the markets and act as a headwind for the NZD/USD pair.

Moving ahead, there isn't any relevant market-moving economic data due for release from the US on Wednesday. Hence, the US bond yield will play a key role in influencing the USD price dynamics. Apart from this, the broader risk sentiment might contribute to providing some impetus to the NZD/USD pair ahead of the New Zealand second quarter inflation expectations data, due for release during the Asian session on Thursday.

Economic Indicator

Employment Change

The Employment Change, released by Statistics New Zealand, is a measure of the change in the number of employed people in New Zealand. Generally speaking, a rise in this indicator has positive implications for consumer spending and is stimulative of economic growth. A higher reading is seen as bullish for the New Zealand Dollar (NZD), while a lower reading is seen as bearish.

Why it matters to traders?

Statistics New Zealand releases employment data on a quarterly basis. The statistics shed a light on New Zealand’s labor market, including unemployment and employment rates, demand for labor and changes in wages and salaries. These employment indicators tend to have an impact on the country’s inflation and Reserve Bank of New Zealand’s (RBNZ) interest rate decision, eventually affecting the NZD. A better-than-expected print could turn out to be NZD bullish.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD defends 1.3300 after strong UK PMI data

Following Thursday's sharp decline, GBP/USD clings to small gains above 1.3300 in the American session on Friday, supported by the upbeat UK Retail Sales and July PMI data. Nevertheless, the pair's upside remains capped as investors cling to a cautious stance amid a further escalation of tensions in the Middle East. The US July PMI data failed to trigger relevant price action.

EUR/USD remains below 1.1400 after mixed US PMIs

EUR/USD pressures daily lows below the 1.1400 mark in the American session on Friday. Mixed S&P Global PMIs, as manufacturing output contracted while services activity expanded in July, triggered no relevant market reaction. The focus remains in Middle East developments and inflation-related concerns.

Gold holds above $4,050 but momentum still missing

Gold builds on its modest intraday bounce and climbs above the $4,050 level on Friday, hitting a fresh daily high amid a modest US Dollar pullback. The fundamental backdrop, however, warrants some caution before confirming that the pullback from an over two-week high, touched on Wednesday, has run its course and positioning for any meaningful upside.

Ethereum: Derivatives interest in ETH improves, but signs of caution remain

Ethereum is hovering slightly below the $1,900 level, down 3% on Thursday following a slight expansion in derivatives interest. The top altcoin's open interest has increased to 14.60 million ETH, marking a 600K ETH increase over the past two days and its highest level since June 7.

XRP retreats as ETF interest cools

Ripple (XRP) slides toward the short-term $1.10 support on Friday, as broader crypto market sentiment weighs on crypto assets. The sell-off mainly stems from fears of inflation in the United States (US) amid the ongoing war in the Middle East and rising Oil prices.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.