Arguably, the upcoming NZ employment data......>

KIWI: Arguably, the upcoming NZ employment data provides the highlight of the

Asia-Pacific docket on Wednesday.

- NZD/USD last deals at ~$0.6820, well within the broader $0.6690-$0.6860 range

observed in July.

- The release has perhaps garnered even more significance as the RBNZ's PTA now

has an employment aspect to it.

- In its most recent MPS the RBNZ noted that "employment is currently within a

broad range of indicators of the maximum sustainable level. Spare capacity in

the labour market appears to have been absorbed, although estimates of capacity

are uncertain." On the wage front the RBNZ noted that "the rise in capacity

pressure, increases in the minimum wage, and rising headline inflation are

expected to generate higher wage inflation. There is a risk that minimum wage

increases pass through to aggregate wage inflation to a greater extent than

currently assumed."