The New Zealand dollar edged higher against the US dollar, reaching a high of 0.7000. It’s been a very beautiful voyage for the NZD/USD currency pair, which began three days ago by consistently marking itself with the mark of the green candle on the graph.
And the incredible drop in the unemployment rate is undeniably a catalyst for the currency’s rise.
Statistics New Zealand’s release of the employment rate aided it even more, as it improved in the second quarter compared to the previous quarter’s figure. And it turned out to be a touch lower than economists had predicted.
The unemployment rate reflects the number of people with no job over the given time. Given stats are the percentage reflection of the unemployed people out of the total civilian workforce.
Generally speaking, increasing numbers indicate a bearish market for the NZD/USD pair ahead and vice versa.
Though its NZ market is currently on a bullish trend and openly welcomes investors for business purposes, several factors have contributed to the currency’s rise.
Whereas, the US Department of Labor will release the data of initial jobless claims on August 05, 2021, which as per economists’ predictions, might fall from 400 K to 384 K in July compared to prior data.
The number of people filing first-time claims for state unemployment insurance is measured by initial jobless claims. In other words, it serves as a barometer of labor market strength. A higher-than-expected number signals market weakness, which has an impact on the health and direction of the US economy.
The NZD/USD pair has many support levels in the backend of the price, which might push the price above the said level.