New Zealand Dollar Fails to Hold onto Gains After Employment Data

The New Zealand dollar rallied today following the release of impressive employment data, but the currency was unable to hold gains for long. Currently, the kiwi trades flat versus the US dollar and trimmed its gains significantly versus other most-traded rivals.

New Zealand employment grew by 1.2% in the March quarter from the previous three months, more than analysts had predicted — 0.8%. The unemployment rate dropped from 5.2% to 4.9% while experts expected just a small decrease to 5.1%. The New Zealand currency reacted positively to the data, but was unable to hold onto gains, perhaps because traders were a bit nervous ahead of today’s policy announcement from the US Federal Reserve.

NZD/USD traded close to its opening level of 0.6934 as of 8:25 GMT today after rallying to the high of 0.6968 intraday. NZD/JPY was up from 77.61 to 77.76, touching the session high of 78.01.

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