NZ Dollar Rises On Upbeat Jobs Data

The New Zealand dollar strengthened against other major currencies in the Asian session on Wednesday, following the release of nation's upbeat jobs data in the first quarter of 2023.

Data from Statistics New Zealand showed that the unemployment rate in New Zealand came in at a seasonally adjusted 3.4 percent in the first quarter of 2023, unchanged from the previous three months and below expectations for 3.5 percent.

The New Zealand economy added 0.8 percent on quarter, beating forecasts for an increase of 0.4 percent and accelerating from 0.2 percent in the three months prior.

The labor cost index was up 0.9 percent on quarter and 4.5 percent on year after rising 1.1 percent on quarter and 4.3 percent on year in the previous quarter. The participation rate was 72.0 percent, exceeding expectations for 71.7 percent, which would have been unchanged.

Traders expect the nation's upbeat jobs data may add some cues to increase RBNZ interest rate further.

In the Asian trading today, the NZ dollar rose to nearly a 3-week high of 0.6249 against the U.S. dollar and a 2-day high of 1.0681 against the Australian dollar, from yesterday's closing quotes of 0.6207 and 1.0731, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 0.64 against the greenback and 1.05 against the aussie.

Against the euro and the yen, the kiwi edged up to 1.7639 and 85.05 from yesterday's closing quotes of 1.7707 and 84.77, respectively. The kiwi may test resistance around 1.71 against the euro and 87.00 against the yen.

Looking ahead, Eurozone unemployment rate for March is due to be released at 5:00 am ET.

In the New York session, U.S. ADP jobs report for April, U.S. PMI reports for April and U.S. EIA weekly crude oil reports are slated for release.

At 2:00 pm ET, U.S. Federal Reserve's monetary policy announcement is due. The Federal Reserve is expected to raise the fed funds rate by 25 basis points to a range of 5%-5.25% during its May 2023 meeting.

Half-an-hour later, the Federal Reserve will participate in a press conference following the monetary policy announcement.