NZD Gains as Weaker US Employment Report Pressures USD
The New Zealand Dollar has gained strength against the US dollar after a weaker-than-expected US employment report. The report, released by the Bureau of Labor Statistics, showed that US Nonfarm Payrolls fell by 23K in July, compared to market expectations for an increase of 80K jobs.
Sharp downward revisions to previous payrolls reinforced expectations of a more accommodative Federal Reserve, which has put pressure on the US dollar. The Reserve Bank of New Zealand's hawkish stance continues to support the New Zealand Dollar.
The NZD/USD pair is trading around 0.5890, up 0.36% on the day. According to Richmond Fed President Thomas Barkin, the latest employment figures reflect a labor market characterized by low hiring and low firing rather than a significant deterioration. However, corporate earnings remain strong.