The New Zealand Dollar rose sharply during Wednesday’s early Asian session on the back of strong employment figures. The NZD/USD jumped from 0.6670 to 0.6740 straight after the report with the unemployment rate for Q3 reporting a strong decline moving from 4.4% to 3.9%, the lowest in almost a decade and the highest employment rate in 30 years at 71.1%. Even average hourly earnings rose by 1.4% q/q, which was significantly above the private wage growth seen at 0.5% q/q.
Earlier this morning the NZD also benefited as events in the U.S unfolded and results of a spilt congress with the democrats taking the house were confirmed. The pair broke through 67c to touch a high of 0.6782 .
Also this morning at the time of writing the Kiwi benefited on the back of the RBNZ release, the OCR (Official Cash Rate) which as expected was kept at record lows of 1.75% and said it would stay at this level through 2019 and into 2020. With the governor Adrian Orr in his accompanying statement saying that “There are both upside and downside risks to our growth and inflation projections. As always, the timing and direction of any future OCR move remains data-dependant”.
Now that we have taken out 67c, next test here is 0.6800 and 0.6850, downside support sits 0.6700.