NZD Holds Steady Ahead of New Zealand Labor Market Report
The New Zealand Dollar (NZD) held steady against the US Dollar (USD) on Monday, trading near the 0.5870 zone as traders waited for the release of New Zealand's second-quarter labor market report.
The NZD/USD pair had rallied from the sub-0.5800 area last week but lost momentum, leaving price action confined to a narrow band ahead of the data release.
The US Dollar found support from the strong ISM Manufacturing Purchasing Managers Index, which rose to 55.6 in July and beat expectations, lifting Treasury yields and trimming appetite for high-beta currencies.
However, a decline in Crude Oil prices after President Donald Trump confirmed talks with Iran improved the broader risk mood, helping the NZD avoid losses seen in its Australian counterpart.
The labor market report is expected to show an unemployment rate of 5.4% and employment change slowing to 0.1%, while wage growth is seen accelerating to 0.6% QoQ.
A hotter-than-expected print would argue for a more patient Reserve Bank of New Zealand (RBNZ), but rising unemployment and firmer wage costs could leave the Kiwi vulnerable to two-way volatility.