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NZD/USD trades +6 pips at $0.6496, following...>

KIWI: NZD/USD trades +6 pips at $0.6496, following the release of a mixed NZ
labour market report. The unemployment rate unexpectedly edged lower to 4.0%
from 4.2% in Q4, albeit driven solely by a fall in participation as employment
growth undershot consensus. Underutilisation also declined. Private sector wages
continued to rise, albeit at a steady rate, but avg earnings grew less than exp.
- The jobs report is one of the final pieces of data ahead of next week's
monetary policy decision from the RBNZ. Market pricing suggests a mere ~3%
chance of a reduction to the OCR at the upcoming meeting.
- Both headline price index & whole milk prices fell at the latest GDT auction.
Results were released in the London afternoon on Tuesday.
- On the whole, Tuesday saw NZD/USD rebound from its YtD lows amid a broad based
recovery in risk appetite amid soothing policy measures from the PBoC.
- Bulls look for a rally through the 200-DMA at $0.6507, towards the 23.6%
retracement of the Dec 31 - Feb 4 slide at $0.6522. Bears keep an eye on the
two-month low of $0.6450, printed on Tuesday. Below would open the $0.6400 mark.
- Looking ahead, NZ 2-Yr inflation expectation hits on Friday.

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