NZD Falls as Unemployment Hits Two-Year High

The New Zealand Dollar (NZD) came under selling pressure on Wednesday after data showed an unexpected rise in unemployment to 5.6% in the second quarter, exceeding market expectations.

The employment rate rose to 0.5%, up from 0.2% previously and above market forecasts of 0.2%, but this was offset by a higher-than-expected increase in unemployment.

The Reserve Bank of New Zealand (RBNZ) may now be less likely to implement further monetary tightening, which weakened the NZD.