NZD/USD trends lower after Trump victory and weak NZ employment data

NZD/USD declines after Trump wins the US presidential election, boosting USD. 

The Kiwi Dollar is further hampered by weak NZ labor market data showing a rise in joblessness. 

NZD/USD could fall further if the policy trajectories of the two central banks diverge.

NZD/USD trades down by over three quarters of a percent in the 0.5940s as the US Dollar (USD) strengthens across the board following the announcement that the Republican nominee Donald Trump won the US presidential election. 

In addition, the Republican party gained majorities in both the US Senate and US Congress. This will make it easier for Trump to implement his Dollar-positive economic agenda, including higher tariffs on foreign imports and overall lower taxes. 

The reason Trump’s policies are bullish for the Dollar is because they will likely lead to increased spending, higher prices and rising inflation. This, in turn, will probably delay the Federal Reserve (Fed) from cutting interest rates. Higher interest rates attract greater foreign capital inflows so are positive for the Greenback.