NZ employment data will be the focus today - ANZ

Analysts at ANZ explained that the NZ employment data will be the focus today.

Key Quotes:

"The figures for Q2 will likely show continued strong employment demand and the unemployment rate dropping by 0.1%pts to 4.8% – an 81⁄2-year low. Signs of accelerating wage growth, which history suggests should have emerged by now, will remain tentative at best. It is becoming increasingly clear, that secular forces – the likes of technology – are outweighing cyclical themes. RBNZ Deputy Governor Spencer also speaks at 9am on Banking Regulation.

Currency:

The NZD was fairly stable overnight as the USD consolidated. But the USD downtrend remains intact and retracements are likely to be shallow. US June PCE inflation was a touch better than expected at 1.4% y/y, but the annualised average monthly growth rate for the first half of this year puts it at 1.0% and that is weighing on the USD, as is the volatile political backdrop. Today’s Q2 employment data should be broadly NZD supportive."