Elsewhere, the next focus for antipodeans will be the NZ employment report, which will be key ahead of the RBNZ rate decision later this month and essentially confirm whether or not a hike will take place. As it stands, money markets are pricing in a 77% probability of a 25bps hike at the upcoming meeting. Although, while front end rates have seen a sizeable shift in the past month, the Kiwi has failed to take advantage of the move in rates with NZD/USD continuing to hover around the 0.7000 handle. On the flipside, however, a miss in tonight’s employment will likely lead to a more 50/50 rate hike call for the August meeting and thus prompt a slight pick up in AUD/NZD to 1.0600.
