NZD/USD has rallied hard on the back of a very strong jobs performance

• NZD/USD has rallied on some surprising data in New Zealand  jobs data with the jobless rate dropping to 3.9% vs the expected 4.4%.  
• NZD/USD takes out 0.67 and R3 0.6722.

A stubbornly  buoyant Kiwi has just soared higher onto the 0.67 handle after some impressive jobs data as follows:

• Unemployment rate: 3.9% “¦.(The main  driver of the upside) vs the expected 4.4%, prior was 4.4%, revised from 4.5%.
• Employment change q/q: 1.1% “¦ (Another very positive outcome) vs expected 0.5%, prior was 0.5%.
• Employment change y/y: 2.8% betaing the expected 2.0%, prior was 3.7%.
• Participation rate: 71.1% rising even as unemployment falls, another strong sign in this report.
• expected 70.9%, prior was 70.9%.
• Average hourly earnings: 1.4% (Good data) vs the expected 0.8%, prior was 0.2%.
• Private wages including overtime: 0.5% vs the expected 0.5%, prior was 0.6%.
• Private wages excluding overtime: 0.5% vs the expected 0.5%, prior was 0.6%.

Meanwhile, all eyes will now turn to the RBNZ survey of inflation expectations (1pm Syd/10am Sing/HK) which was 2.04%yr in Q3. Then we have the RBNZ.  The  RBNZ  is already of the view that it has met half of its mandate of ‘maximum sustainable employment so it will make this meeting even more interesting following this data.

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NZD/USD levels

• Support 0.6550

The bird is now eyeing 138.2%  located at 0.6775 ahead of the 161.8% that meets the June 20 low at 0.6826 ahead of the double top July-Aug highs at 0.6850/60.