Forex
NZD Dives Below 0.5900 Amid Decade-High Unemployment Rate
The New Zealand Dollar (NZD) dropped below 0.5900 against the US Dollar (USD) after data showed the country's unemployment rate hit a decade high of 5.3% in Q2 2025, up from 4.9% in the previous quarter.
This increase surpasses market forecasts of 5.0%, with economists noting that the Reserve Bank of New Zealand (RBNZ) had anticipated a gradual softening of the labor market.
The RBNZ now faces pressure to accelerate interest rate cuts, with interest rate futures pricing in a higher probability of a 50-basis-point cut at its next policy meeting in August.