NZD/USD drops amidst solid US NFP report, set to end week with losses – Crypto News – Crypto News
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NZD/USD re-tested YTD lows around 0.6060 post-upbeat US economic data, ahead of NFP NZD/USD re-tested YTD lows around 0.6060 post-upbeat US economic data, ahead of NFP

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NZD/USD drops amidst solid US NFP report, set to end week with losses – Crypto News

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  • NZD/USD tumbles more than 0.70%, trading at 0.6124, erasing gains from Thursday’s session.
  • US jobs data was better than expected, spurring a dip in the unemployment rate.
  • University of Michigan Consumer Sentiment Index rises to 69.0, its highest level since August, with revised lower inflation expectations.

NZD/USD is dropping and erased Thursday’s gains on Friday after US economic data sent traders scrambling to pare dovish bets on the US Federal Reserve as November’s Nonfarm Payrolls exceeded estimates. That shows the economy’s resilience; hence, the pair tumbles more than 0.70% and trades at 0.6124.

NZD/USD finished the week down, traders eye next week’s FOMC meeting

As previously mentioned, the US Department of Labor released November’s Nonfarm Payrolls report, which depicted the labor market is in better shape than previously released data in the week. The economy added 199,000 jobs, more than the 150,000 in October, and exceeded forecasts of 180,000. As a consequence, the unemployment rate dipped from 3.9% to 3.7%, and Average hourly earnings stood at 4% during the last 12 months to date, suggesting a wage-price spiral is out of discussion.

Following the data release, the NZD/USD seesawed on a wide range and dived to its low of the day at 0.6103 before recovering some ground. Nevertheless, the damage is done, with the pair set to finish the week with losses.

Besides that, the University of Michigan (UoM) revealed its latest consumer poll, which showed American households are more optimistic regarding the economic outlook, as the Consumer Sentiment Index rose by 69.0, its highest level since August, while inflation expectations were revised lower.

The US Dollar Index (DXY), which tracks the buck’s performance against six rivals, rose by 0.30%, at 104.01, underpinned by a jump in US yields. The US 10-year bond yield climbed 8 basis points and is set to finish the week at 4.236%.

In the meantime in New Zealand, next week’s economic docket will feature the Current Account alongside the Gross Domestic Product (GDP) figures for the third quarter. Estimates lie at 0.2%, less than the previous quarter’s growth of 0.9%. On the US front, Traders focus on the following week’s US inflation report and the Federal Open Market Committee (FOMC) meeting.

NZD/USD Technical Levels

 

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