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    NZD/USD pair nears 0.6000 as New Zealand’s labor data weakens

    by VT Markets
    /
    Feb 9, 2026

    US Employment Report Expectations

    The upcoming US employment report is expected to show an increase of 70,000 jobs in January, with the unemployment rate holding steady at 4.4%. A weaker labor market in the US could lead to a decline in the USD’s value in the future. The New Zealand Dollar (NZD) is affected by the overall health of the economy, the Reserve Bank of New Zealand’s (RBNZ) policies, and trade relations, especially with China. Dairy prices, as New Zealand’s main export, are particularly important. A strong economy usually strengthens the NZD, while poor economic data can lead to a drop in its value. Typically, the NZD gains strength in stable and optimistic markets, but it weakens during periods of economic uncertainty or market instability, as investors seek safer options.

    External Factors Impacting The New Zealand Dollar

    It’s also important to look at external factors that impact the New Zealand dollar. Recent data from China, New Zealand’s largest trading partner, showed the Caixin Manufacturing PMI falling to 49.5, indicating a contraction that could lower demand for New Zealand’s exports. In addition, the Global Dairy Trade Price Index has seen slight declines in recent auctions, creating pressure on this crucial source of revenue. Given this situation, buying NZD/USD put options is a smart strategy to prepare for potential declines while managing risk. Traders could consider expirations in late February or March, aiming for strike prices at or below 0.6000. This approach could yield profits if the pair continues to drop following the disappointing New Zealand data. Alternatively, those who have strong beliefs about the market can open short positions in NZD/USD futures for a more straightforward strategy. We anticipate an increase in implied volatility as we approach the US jobs data release this Wednesday. This creates an opportunity for traders to explore strategies like selling call spreads to collect premiums, betting that the pair will not significantly rise from current levels. Create your live VT Markets account and start trading now.

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