NZD/USD stays on the back foot and trades in negative territory near 0.6450. The pair is set to extend its decline towards 0.62 in the coming months, economists at Rabobank report.

Strong print for wage data is likely to give the NZD/USD a fillip

“A strong print for wage data this evening is likely to give the NZD/USD a fillip. However, the impact is likely to be soon overwhelmed by the response to the FOMC meeting tomorrow.”

“On the basis that we expect the market to price out expectations of a Fed rate cut this year, we see the potential for NZD/USD to dip back to its January low in the 0.62 area on a three-to-six month view. However, we expect NZD/USD to end the year on a stronger note.”

See – NZ Labour Market Preview: Forecasts from four major banks, unemployment around record low