NZD/USD prints a fresh three-week high amid weak US Dollar and uncertainty ahead of RBNZ policy.
The US Dollar falls on the backfoot due to moderating US labor market conditions.
Investors expect that the RBNZ will hold its OCR at 5.5%.
The NZD/USD pair refreshes a three-week high near 0.6150 in Monday’s Asian session. The Kiwi pair extends its winning streak for the fifth trading session as a debate over the Federal Reserve (Fed) to begin reducing interest rates from the September meeting has heated up after the United States (US) Nonfarm Payrolls (NFP) report for June pointed to normalization of labor market strength.
According to the CME FedWatch tool, 30-day Federal Funds Futures pricing data shows that the probability of rate cuts in September has improved to 75.8% from 64% recorded a week ago. The data also shows that the Fed will deliver subsequent rate cuts in the November or December meeting.
The data from the NFP report showed that the Unemployment Rate unexpectedly rose to 4.1% from the estimates and the prior release of 4.0%. Average Hourly Earnings, a measure to wage growth momentum, decelerated expectedly on both monthly and an annual basis. Fresh hiring came in higher at 206K from estimates of 190K but lower than May’s reading of 218K.
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