Forex
NZD Tumbles as Strong US Labor Data Bolsters Greenback
The New Zealand Dollar has fallen against the US Dollar as strong labor data from the United States supports the demand for the Greenback.
US Initial Jobless Claims dropped to 187K in the week ending July 18, well below the market forecast of 212K and the previous revised reading of 209K. This suggests that layoffs remain limited and the US labor market continues to show resilience.
The stronger figures could reinforce expectations that the Federal Reserve will maintain restrictive monetary policy for longer. Meanwhile, elevated New Zealand inflation continues to support expectations of a tighter Reserve Bank of New Zealand, but this has not been enough to offset broader US Dollar strength.