NZD Gains Ground as Weaker US Employment Report Pressures USD

The New Zealand Dollar (NZD) has gained ground against the US Dollar (USD), rising by 0.36% to around 0.5890, following a weaker-than-expected US employment report.

Data released by the Bureau of Labor Statistics showed that US Nonfarm Payrolls fell by 23K in July, compared with market expectations for an increase of 80K jobs, leading to downward revisions of previous months' payrolls and a combined decrease of 103K jobs.

The Unemployment Rate edged down to 4.1% from 4.2%, while the annual Average Hourly Earnings growth slowed to 3.2% from a revised 3.4%, reinforcing evidence that the US labor market is cooling.

Richmond Fed President Thomas Barkin commented on the report, saying it reflects a labor market characterized by low hiring and firing rather than a significant deterioration, while noting strong corporate earnings.