The NZD/USD has traded to either side of 0.8250 and 0.8280 over the past 24-hours, trading around 0.8250 at present. Yesterday’s BNZ Performance of Services index confirmeda positive trend heading into Christmas. The Novemberreading stood at 56.3, down 1.4 points from October, butillustrating a solid three months of expansion for the sector.Combined with last week’s PMI the index shows thatemployment is now ramping up. It points to a sub-6%unemployment rate in Q4. It is further justification for themarket’s current pricing of OCR hikes from early next yearand almost 200bps of hikes over the next two years. Butthis story is now well priced by the NZD. The NZD/USD hascontinued to consolidate over the past 24-hours, well withinrecent ranges. It sits around 0.8250 currently.
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