The Kiwi remains under pressure near 0.5585 following a disappointing 5.7% unemployment print, with traders awaiting US jobs data to gauge the next move against a firm US Dollar.
New Zealand's unemployment rate rose to 5.7% in the three months ended September, the highest in nearly 11 years and above the 5.5% consensus, pushing NZD/USD down to around 0.5585. Saturday's general election adds political uncertainty, while the RBNZ's surprise decision to hold rates has unsettled positioning. Only a break below the 0.5565 lower Bollinger Band would confirm further losses.
New Zealand unemployment rose to 5.7%, worse than the 5.5% expected and the highest in nearly 11 years, and political uncertainty ahead of Saturday's election is weighing on the currency against a hawkish Fed backdrop.
Immediate support is the lower Bollinger Band at 0.5565; a decisive break below could open further losses. Upside resistance sits at 0.5640, then 0.5715 and the 100-day SMA near 0.5755.
Markets price a 70.9% chance of a Fed rate hike in December, and Barkin's moderately hawkish speech (6/10 FXS Speechtracker) with sticky inflation and AI-related cost pressures keeps the Dollar supported. However, the Democrats' Congress sweep trimmed bets on Fed tightening, and the September jobs report later Friday could swing sentiment either way.
Hawkish Fed commentary and the 70.9% market odds of a December rate hike support the Dollar, though the Democrats' midweek Congress victory led traders to trim some hike bets. The September jobs report later Friday is the key event.
A stronger-than-expected US jobs report would support the Dollar and add downside pressure on NZD/USD, while a weak print could ease the pressure on the pair.
The New Zealand Dollar faces renewed selling pressure, trading near 0.5585 after domestic unemployment climbed to 5.7%, exceeding market expectations. Political uncertainty ahead of the November 7 general election and a resilient US Dollar, supported by hawkish Federal Reserve sentiment, continue to weigh on the pair. Investors are now shifting focus to the upcoming US non-farm payrolls report for further directional cues.
The New Zealand Dollar is declining due to a worse-than-expected unemployment rate of 5.7% and heightened political uncertainty ahead of the upcoming general election.
Immediate support is at the lower Bollinger Band of 0.5565. Resistance levels are located at 0.5640, 0.5715, and the 100-day SMA near 0.5755.