GBP/NZD Rally Fades as NZ Labour Market Data Weighs on Kiwi

The Pound to New Zealand Dollar (GBP/NZD) exchange rate has rebounded from a two-month low, rising by approximately 0.5% on Wednesday after weaker-than-expected New Zealand employment figures weighed on the Kiwi.

At the time of writing, GBP/NZD was trading around NZ$2.2944.

The New Zealand labour market data showed that the unemployment rate climbed to 5.6% in the second quarter, its highest level in more than a decade and above forecasts for a rise to 5.4%. This has prompted investors to reassess expectations for further Reserve Bank of New Zealand (RBNZ) interest rate hikes.

Meanwhile, the Pound strengthened following the publication of the UK's latest services PMI, which showed that the UK's dominant services sector rebounded strongly after June's slowdown.