USD heading for the weekly gain, NZD rose sharply against AUD due to CPI jumps in Q2

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.