NZD/USD and AUD/USD hit session highs on NZ employment data

NZD/USD and AUD/USD have rallied to session highs following New Zealand's Q2 unemployment data release. The unemployment rate came in at 5.2%, reinforcing market expectations for future RBNZ rate cuts. The kiwi dollar initially surged on the data release, experienced a brief pullback, but quickly returned to test earlier highs. AUD/USD was dragged higher in sympathy with the NZD strength, reflecting the close correlation between the two Oceanic currencies. The labor market data suggests continued economic softening in New Zealand, which paradoxically supported the currency in the short term as traders positioned ahead of potential policy adjustments. Technical momentum remains bullish for both pairs in the near term, with NZD/USD finding support from the employment figures despite their rate-cut implications. Traders should monitor upcoming Australian economic releases for potential divergence between the two currencies.