NZD/USD surges after strong New Zealand employment data

• NZD/USD gained 60+ pips after Q2 jobs report from New Zealand.
• Trade/political headlines waited for fresh clues ahead of tomorrow’s RBNZ.

NZD/USD rallies more than 60 pips to before taking the bids to 0.6570 after New Zealand’s second quarter (Q2) employment statistics pleased Kiwi buyers on early Tuesday.

The jobs report was overall strong with Unemployment Rate declining below 4.3% forecast to 3.9% while beating 0.4% expected improvement in Employment Change with 0.8% mark. Additionally, Labour Cost Index (YoY) grew past 2.1% consensus to 2.2% but Participation Rate lagged behind 70.5% expectations to 70.4%.

The US-China trade tussle just got bitter with the US Treasury Department officially terming the dragon nation as a currency manipulator after it allowed China’s offshore Yuan (CNH) to slump to a record low on yesterday.

On the economic calendar, investors will now keep an eye over the US JOLTS Job opening data for June while also waiting for tomorrow’s monetary policy meeting by the Reserve Bank of New Zealand (RBNZ).

Meanwhile, trade/political headlines surrounding the US-China could keep pleasing momentum traders.

Technical Analysis

Pair’s latest recovery can help it challenge 0.6600 round-figure ahead of targeting 21-day exponential moving average (EMA) level of 0.6630 whereas ten-month-old trend-line around 0.6500 becomes the strong downside support.