USD is heading to its best weekly gain on Friday, as US jobless claims fell to their 16-month low and the labor market gains momentum. Despite worker shortages and rising raw material costs, investors are confident that in the mid-term, the demand for goods and services will be strong enough to support growth.
New Zealand has seen its Q2 consumer prices having the biggest increase in a decade. The unexpected increase has added to the expectation that central bankers will probably raise interest rates earlier than expected. CPI rose by 3.3% on a YoY basis, compared with 1.3% in Q1. The forecast was at 2.8%. NZDAUD rose sharply by 0.37% during the session, currently trading at 0.943.