Ella 
NZD/USD continued to build on its strong intraday gains, reaching a more than two-week high during Wednesday’s European trading session, with bulls currently building momentum above the psychological 0.6000 mark.
New Zealand reported better-than-expected employment data, showing employment rose 0.4% in the second quarter. The data beat last quarter’s 0.2% decline and market expectations. In addition, the unemployment rate also rose less than consensus expectations, rising to 4.6% from 4.4% in the January-March period. The upbeat data reduced the chances of a rate cut from the Reserve Bank of New Zealand (RBNZ) and triggered aggressive short covering in NZD/USD.
Meanwhile, Chinese trade data released on Wednesday showed imports unexpectedly surged to 7.2% year-on-year in July, suggesting domestic demand remains resilient. This data, along with a generally positive risk tone, pushed NZD/USD higher for a second consecutive day. However, it remains to be seen whether bulls can take advantage of a pickup in demand for the U.S. dollar, supported by a further pickup in U.S. Treasury yields. Additionally, geopolitical risks may dampen market optimism and act as headwinds for NZD/USD.
Looking ahead, the United States will not release any relevant market economic data on Wednesday. Therefore, U.S. bond yields will play a key role in influencing U.S. dollar price dynamics. Beyond this, broader risk sentiment may provide some momentum for NZD/USD ahead of the release of New Zealand’s second-quarter inflation forecast data during Thursday’s Asian session.
