New Zealand currency is arranged for a photograph in Auckland, New Zealand, on Thursday, Sept. 20, 2007.
Chris Gorman | Bloomberg | Getty Images
The dollar was pinned near recent lows against other currencies on Tuesday, as traders awaited U.S. jobs data for a guide to the rates outlook, while labor market strength lifted the kiwi in anticipation of a New Zealand rate hike within weeks.
New Zealand’s jobless rate unexpectedly fell to 4% last quarter, its lowest since December 2019, and the New Zealand dollar jumped 0.5% to a one-month high of $0.7056.
“We’ve flown past full employment, and the economy is becoming quite overheated,” said analysts at ANZ, who expect 25 basis point hikes in August, October, November, February and May to carry kiwi rates from 0.25% currently to 1.5% by mid-2022.
Elsewhere currencies were broadly steady as markets looked ahead to partial U.S. labor data due later on Wednesday and non-farm payroll figures…