NZ Dollar Higher After Strong Employment Data

The New Zealand dollar appreciated against its major counterparts in the Asian session on Wednesday, following the release of strong domestic employment data for the third quarter.

Data from Statistics New Zealand showed that New Zealand's unemployment rate fell a seasonally adjusted 3.9 percent in the third quarter of 2018.

That was well beneath expectations for 4.4 percent and down sharply from 4.5 percent in the three months prior.

Employment saw an increase of 2.8 percent on year - exceeding expectations for a gains of 2.0 percent following the 3.7 percent spike in Q2.

Investors await the Reserve Bank of New Zealand's rate decision due tomorrow. RBNZ is widely expected to keep OCR unchanged at 1.75 percent.

Asian shares were mostly higher after U.S. midterm elections resulted in a divided Congress, offering no surprise to investors.

The kiwi strengthened to more than a 3-month high of 0.6779 against the greenback and near a 4-month high of 76.73 against the yen, from its early lows of 0.6712 and 76.25, respectively. The kiwi is likely to find resistance around 0.685 against the greenback and 78.00 against the yen.

Reversing from its early lows of 1.0753 against the aussie and 1.6996 against the euro, the kiwi climbed to 4-1/2-month highs of 1.0715 and 1.6912, respectively. The next possible resistance for the kiwi is seen around 1.06 against the aussie and 1.67 against the euro.

Looking ahead, German industrial production for September is set for release at 2:00 am ET.

Eurozone retail sales for September, U.K. Halifax house prices and German construction PMI for October are due in the European session.

Swiss National Bank Governing Board Member Fritz Zurbrugg gives a speech titled "Financial Stability: Old and New Challenges" at the Swiss Finance Institute in Zurich at 9:00 am ET.

At 10:00 am ET, Canada Ivey PMI for October is due.