NZ Labour Market Report Overshadowed By U.S. Presidential Race

NZD/USD was well bid Tuesday, as pre-election greenback sales & a jump in oil prices lent support to the rate. Biden's continued lead in the recent polling saw greenback slide, while commodity FX were bolstered by further signals that OPEC+ could delay its planned output hike & API report suggesting a solid decline in U.S. crude stockpiles.

• New Zealand's unemployment rate climbed to 5.3% from 4.0% in Q3, in line with expectations. The figure was underpinned by a marginally bigger than projected decline in employment coupled with a slightly above-forecast uptick in participation rate. Wages rose a tad faster than estimated.
• Jobs data applied some brief, mild pressure to NZD/USD in the NY/Asia crossover, but the rate has promptly resumed gains and last operates +44 pips at $0.6730. Risk-on impetus supporting the pair could be linked to some Florida exit polls, suggesting a close race in that battleground state.
• The rate is operating at its best levels since Sep 21, last +43 pips at $0.6729. A break above channel top at $0.6746 would bode well for the bullish case, opening up Sep 18 cycle high of $0.6798. Bears need a dip through the 50-DMA at $0.6608, towards channel floor/Nov 2 low at $0.6594/89.
• Locally, focus moves to flash ANZ Business Confidence (Thursday) & inflation expectations (Friday). In addition, PM Ardern is set to speak to a Business NZ tomorrow. Her address will outline the gov't's priorities for the remainder of 2020.