Stellar Jobs Report Supports Kiwi

New Zealand's upbeat jobs report for Q3 pushed NZD/USD higher in early Asia-Pac trade, as the data cemented the case for a hike to the OCR later this month. The kiwi dollar comfortably tops the G10 scoreboard as we type.

• Quarterly employment growth registered at +2.0%, exceeding the anticipated pace of +0.4%. The unemployment rate dipped to 3.4% from 4.0% as a result, despite an unexpected uptick in the participation rate to 71.2% from 70.5%. Both unemployment and underutilisation fell to all-time lows, signalling acute tightness in the labour market.
• Hawkish RBNZ repricing ensued and the OIS now prices ~35bp worth of OCR hikes come the end of the next MPC meeting, up from ~30 yesterday. Policymakers are set to convene on Nov 24 for their last gathering this year.
• Separately, the RBNZ released their semi-annual Financial Stability Report, which pointed to an increased chance of housing market correction. Meanwhile, Gov Orr used the accompanying presser to describe labour market data as "highly volatile at present."
• That being, said NZD/USD has reversed only some of the losses registered on Tuesday, when it pierced support from Oct 25 low of $0.7130 and probed the water below its 200-DMA.
• The pair has added 13 pips this morning and last operates at $0.7125, off an earlier high of $0.7131. Further gains past Oct 28/21 highs of $0.7217/19 would give bulls a green light for targeting Jun 7 high of $0.7243. Conversely, a clean break below the 200-DMA at $0.7101 would open up the 50-DMA at $0.7057.