NZD/USD Gains as Strong Labour Data May Pause RBNZ Rate Cuts

The New Zealand Dollar strengthened against the US Dollar following robust labour market data that could prompt the Reserve Bank of New Zealand to reconsider its easing cycle. New Zealand's employment figures exceeded expectations, showing resilience in the job market despite global economic headwinds. This development contrasts with the RBNZ's recent dovish stance and market expectations for aggressive rate cuts through 2025. The strong employment data suggests inflationary pressures may persist, potentially forcing the central bank to maintain a more hawkish approach than previously anticipated. NZD/USD has broken above the 0.6100 psychological level, with immediate resistance at 0.6150. A sustained move above this level could open the path toward 0.6200. Traders are now reassessing their positions ahead of the next RBNZ policy meeting, where any shift in tone regarding future rate cuts could significantly impact the kiwi dollar's trajectory.