2021.08.0407:35:00UTC+00NZ Dollar Soars As Falling Jobless Rate Bolsters Rate Hike Bets

The NZ dollar appreciated against its major counterparts in the Asian session on Wednesday, as the nation's jobless rate fell more than forecast in the second quarter, intensifying expectations for a rate hike by the Reserve Bank of New Zealand this month.

Data from Statistics New Zealand showed that the unemployment rate came in at a seasonally adjusted 4.0 percent in the second quarter.

That beat expectations for a rate of 4.5 percent and was down from 4.7 percent in the previous three months.

Employment was up 1.0 percent on quarter in Q2, surpassing expectations for an increase of 0.7 percent and accelerating from 0.6 percent in the three months prior.

The participation rate was 70.5 percent, shy of expectations for 70.6 percent but up from 70.4 percent in the first quarter.

Asian markets were mostly higher as concerns over China's latest technology clampdown reduced.

The kiwi spiked up to near a 3-week high of 1.6799 against the euro and a fresh 4-week high of 0.7073 against the greenback, off its early lows of 1.6903 and 0.7011, respectively. The kiwi is likely to face resistance near 1.62 against the euro and 0.72 against the greenback.

The kiwi reversed from its prior lows of 76.46 against the yen and 1.0536 against the aussie, rising to an 8-day high of 77.15 and more than an 8-month high of 1.0477, respectively. Next key resistance for the kiwi is likely seen around 80.00 against the yen and 1.03 against the aussie.

Looking ahead, PMI reports from major European economies and Eurozone retail sales for June are due in the European session.

U.S. ADP private payrolls data for July is scheduled for release at 8:15 am ET.

Canada building permits for June and U.S. ISM non-manufacturing PMI for July will be featured in the New York session.