The Kiwi Dollar opens the day fairly flat as the USD Dollar drifted ahead of tonight’s retail sales data. Yesterday’s labour market data out of Australia saw the AUD move lower but had little impact on the NZD, which has seen the NZD/AUD cross rate make gains.
U.S Jobless Claims Rise
US unemployment benefits unexpectedly rose to a five-week high, adding to signs of potential cooling in the labour market. Unemployment claims rose to 222,000 in the week ended June 8, vs market expectations of 215,000. The data had little impact on the greenback, with more interest being on tonight’s retails sales data, and next weeks FOMC rate decision. Markets have priced in a Fed rate cut for July, but there remains an outside chance of a move this month.
Employment Data Sends AUD Lower
The Australian Dollar lost ground yesterday as labour market data came in below market expectations. The unemployment rate remained steady at 5.2% despite the creation of 42,300 jobs in May. Markets had been expecting an unemployment rate of 5.1%. The data has increased expectations of an RBA rate cut next month.
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