NZD/USD faces downside pressure as weak NZ labor data weighs on kiwi

NZD/USD remains under selling pressure near 0.5950, down 0.5% on the day, following disappointing New Zealand labor market data that reinforced expectations for more aggressive RBNZ rate cuts. The unemployment rate jumped to 4.3% in Q2 from 4.0%, exceeding market forecasts of 4.2%, while employment growth stagnated at 0.4% quarter-on-quarter. Wage growth also moderated, with the Labor Cost Index rising just 3.3% year-on-year, down from 3.4% previously. These weak indicators strengthen the case for the Reserve Bank of New Zealand to accelerate its easing cycle, with markets now pricing in 50 basis points of cuts by year-end. Technical analysis shows NZD/USD testing support at 0.5940, with a break below potentially exposing 0.5900. Resistance sits at 0.6000, which has capped recent recovery attempts.