NZD soars after labor market data, precious metals advance

04/08/2021

The New Zealand dollar was trading nearly 1% stronger on Wednesday, rising to one-month highs after strong labor market data.

The employment change rose 1% in the second quarter, way above the 0.6% expected, while the unemployment rate fell notably to 4.0%, from 4.6% booked previously. At the time of writing, the NZDUSD pair was trading at 0.7080, eyeing the critical resistance of 0.71. Should the kiwi jump above 0.71, the medium-term uptrend could be resumed. 

Later in the day, investors will pay attention to the EU PMIs, along with retail sales from the eurozone. The year-on-year indicator is seen halving to 4.5% from 9% recently, while the monthly change is expected to slow sharply to 1.7%, from 4.6% previously.

During the US session, the ADP employment change is forecast to show 695,000 new jobs for July, right where June's number stood. Additionally, the ISM services survey will be released, expected to improve slightly to 60.4.

In the FX market, the USD has been weakening this week, boosting gold and silver. During the London session on Wednesday, gold was up 0.25% at 1,815 USD, while silver was nearly 1% higher, changing hands at 25.75 USD. 
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