- NZD/USD jumped above the 0.6100 threshold but is poised to close a third consecutive weekly loss.
- Headline NFPs came in lower than expected, while wages increased in July.
- The focus is set on next week’s CPI figures from July.
At the end of the week, the NZD/USD rosed but will close a third consecutive weekly loss. Labour market data from the US came in mixed, and the USD DXY index weakened, falling below 102.00. That said, the sector continues to signal to remain unbalanced, which may limit the Greenback’s losses via steady hawkish bets on the Federal Reserve (Fed). On the other hand, New Zealand’s calendar won’t have anything relevant to offer.
Nonfarm Payrolls from the US showed mixed data. The headline showed 187,000 jobs created in July, lower than the 200,000 expected but above the revised figure of 185,000. In addition, Average Hourly Earning increased by 0.4% in the same month, above expectations, while the yearly figure rose to 4.4%. Furthermore, the Unemployment rate came in slightly lower than expected at 3.5% vs 3.6% expected.
According to the CME FedWatch tool, the odds of a 25 basis point (bps) hike in September remain unchanged, while the probabilities of an increase in November slightly rose near 30%. As the Federal Reserve (Fed) will remain data dependent, the next set of inflation data to be released next week will help investors model their expectations and affect the USD price dynamics.
NZD/USD Levels to watch
The daily chart indicates a neutral to bullish technical outlook for NZD/USD in the short term. Although the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) are still negative, they display encouraging signs of strength. Moreover,the pair is below the 20,100 and 200-day Simple Moving Averages (SMAs), indicating that the sellers dominate the broader perspective, and the buyers need to increase their efforts. In line with this, the bearish outlook on the weekly chart is more evident as the pair is set to close a third consecutive weekly loss, having declined nearly 4% since mid-July.
Support levels: 0.6100,0.6060, 0.6050.
Resistance levels:0.6130, 0.6150, 0.6200.
NZD/USD Daily chart
-638267621768459916.png)
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
Australian Dollar steady as markets asses minor US data
The AUD/USD regained positive traction on Thursday following the overnight pullback from a one-week top. A softer US Dollar and a positive risk tone benefited the Aussie, as well as the Reserve Bank of Australia’s (RBA) hawkish stance.
EUR/USD: Further losses now look at 1.0450
Further strength in the US Dollar kept the price action in the risk-associated assets depressed, sending EUR/USD back to the 1.0460 region for the first time since early October 2023 prior to key releases in the real economy.
Gold faces extra upside near term
Gold extends its bullish momentum further above $2,660 on Thursday. XAU/USD rises for the fourth straight day, sponsored by geopolitical risks stemming from the worsening Russia-Ukraine war. Markets await comments from Fed policymakers.
Ethereum Price Forecast: ETH open interest surge to all-time high after recent price rally
Ethereum (ETH) is trading near $3,350, experiencing an 10% increase on Thursday. This price surge is attributed to strong bullish sentiment among derivatives traders, driving its open interest above $20 billion for the first time.
A new horizon: The economic outlook in a new leadership and policy era
The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.
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.