- The New Zealand dollar advances some 0.46% as the North American session ends.
- A risk-off market mood was no excuse for the NZD to gain vs. the USD.
- NZD/USD Technical Outlook: Downward biased as long as it remains below 0.6859.
On Friday, the New Zealand dollar trimmed some of its Thursday’s losses despite a risk-off market mood. At the time of writing, the NZD/USD is trading at 0.6776 as the North American session ends.
US Nonfarm Payrolls headline misses expectations wages rose
The day’s highlight was the US Nonfarm Payrolls report, which was mixed. The headline showed that the US economy added “just” 199K employments in December, 201K short than the 400K estimated by analysts.
Nevertheless, the Unemployment Rate -Fed’s gauge of labor market conditions- dropped 0.2%, from 4.1% to 3.9%, a level was last seen in February 2020, before the pandemic hit the US. Furthermore, Average Hourly Earnings for December grew 4.7% annually based, 0.5% higher than estimations, further cementing the Federal Reserve stance.
Market's reaction
The NZD/USD seesawed around Thursday’s lows and the daily pivot, in the 0.6738-65 range, to finally break above the latter, stabilizing around the 100-hour simple moving average (SMA) lying at 0.6780. furthermore, the US Treasury yields, led by the 10-year benchmark note, rose to a daily high at 1.801%, while the US Dollar Index, which tracks the greenback’s performance against a basket of its rivals, slumped some 0.61%, sitting at 05.74.
NZD/USD Price Forecast: Technical outlook
The NZD/USD remains downward biased, per the daily chart. The simple moving averages (SMAs) on the latter reside above the spot price; additionally, a daily close above the last lower high around 0.6859 is needed for NZD bulls to have a chance of launching an attack towards the 100-day SMA at 0,6965.
The NZD/USD first support is the January 6 daily low at 0.6733. The latter’s breach would expose the psychological 0.6700 level, followed by a 2021 yearly low at 0.6701.
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
GBP/USD stays below 1.2650 as BoE Governor Bailey testifies
GBP/USD trades in the red below 1.2650 on Tuesday. Although BoE Governor Bailey said a gradual approach to removing policy restraint will help them observe risks to the inflation outlook, the sour mood doesn't allow the pair to gain traction.
EUR/USD remains heavy near 1.0550 amid escalating Russia-Ukraine conflict
EUR/USD stays under heavy selling pressure near 1.0550 in Tuesday's European trading. The US Dollar finds fresh haven demand on escalating goeopolitical tensions amid reports that Kremlin is threatening a nuclear response amid Ukraine's use of Western missiles against Russia.
Gold extends recovery toward $2,640 as geopolitical risks intensify
Gold price builds on Monday's gains and rises toward $2,640 as risk-aversion grips markets amid intensifying geopolitical tensions between Russia and Ukraine. Meanwhile, the 10-year US Treasury bond yield is down more than 1% on the day, further supporting XAU/USD.
Canada CPI expected to rise 1.9% in October, bolstering BoC to further ease policy
The Canadian Consumer Price Index is seen ticking higher by 1.9% YoY in October. The Bank of Canada has reduced its policy rate by 125 basis points so far this year. The Canadian Dollar navigates multi-year lows against its American counterpart.
The week ahead: Powell stumps the US stock rally as Bitcoin surges, as we wait Nvidia earnings, UK CPI
The mood music is shifting for the Trump trade. Stocks fell sharply at the end of last week, led by big tech. The S&P 500 was down by more than 2% last week, its weakest performance in 2 months, while the Nasdaq was lower by 3%. The market has now given back half of the post-Trump election win gains.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.