NZD/USD hits three-day highs above 0.6200 as US dollar weakens
|- Improvement in risk sentiment weighs on the US dollar.
- US yields higher after a better-than-expected jobs report.
- NZD/USD recovers from 2-year lows, heads for a weekly gain.
The NZD/USD is trading above 0.6200, at the highest level in three days. The pair rose more than 70 pips from the daily low boosted by a weaker US dollar across the board.
Risk-on, NZD up
An improvement in risk sentiment triggered a reversal of the US dollar. Stocks in Wall Street are up after a negative opening. The Dow Jones rises by 0.37% and the Nasdaq 0.43%. US yields are at weekly highs, with the 10-year at 3.07%.
Regarding economic data released on Friday, the US June jobs report showed the economy added 372K payroll against expectations of 268K. The unemployment rate held steady at 3.6%, in line with market consensus.
The NZD/USD bottomed at 0.6130 after NFP and then rebounded more than 70 pips. It printed a fresh daily high at 0.6206. As of writing, it remains near the top, with a positive momentum.
The 4-hour chart shows the pair breaking above a short-term downtrend line and the 0.6190 resistance. If it remains above, more gains seem likely. The next resistance stands at 0.6220 followed by 0.6250. A slide back under 0.6190 would expose again 0.6130.
The NZD/USD is about to end the week with modest gains and far from the two-year low it reached on Tuesday at 0.6123. Next Wednesday, the Reserve Bank of New Zealand will announce its decision on monetary policy. A rate hike from 2% to 2.50% is expected.
Technical levels
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