- The markets are now in wait and see mode for the NFP.
- NZD/USD sits near the lows as it consolidated another bid in the greenback.
NZD/USD is down some 0.2% in the early stages of Friday in Asia as traders walk in with US Nonfarm Payrolls slated for the US session.
At the time of writing, NZD/USD is trading at 0.6966 towards the lows of the day, 0.6961, following a drop from the 0.7010 highs fuelled by the strength in the US dollar.
The prior day's stronger than expected ADP employment print has been received as is a positive prelude for Friday's US payroll data, boosting the greenback to fresh cycle highs.
The US dollar index, which measures the greenback against six major counterparts, rose to 92.6021, the highest since early April. It last traded up 0.2% at 92.542.
The index in June posted its best monthly performance since November 2016, driven in part by the Federal Open Market Committee's unexpected hawkish shift at a meeting during the month.
The member's forecasts released after the June FOMC meeting pencilled in two interest rate hikes by the end of 2023.
Month and quarter-end rebalancing has also provided some long-awaited volatility in forex, but NZD and AUD were more stable than the majors.
''Price action remains unusual (at least in our view), with the NZD unable to capitalise on falling US bond yields, continually lifting expectations for earlier OCR hikes here, and the ongoing rally in commodity prices,'' analysts at ANZ Bank said.
''We think that’s a favourable backdrop, biasing the NZD higher, but it has been an odd sort of a week and patience may be required.''
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.