NZD/USD retraces intraday gains near 0.5930 ahead of US jobs data – Crypto News – Crypto News
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NZD/USD unable to break 0.6250, holds in a consolidation range NZD/USD unable to break 0.6250, holds in a consolidation range

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NZD/USD retraces intraday gains near 0.5930 ahead of US jobs data – Crypto News

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  • NZD/USD could further lose ground as US Dollar initiates recovery.
  • Improved US Treasury yields could underpin the Greenback.
  • RBNZ emphasized the need for interest rates to stay higher for an extended duration.

NZD/USD recovers from the four-week low, extending gains on the second successive day. The spot price trims intraday gains and still trades higher around 0.5930 during the European session on Thursday. The uplift in the pair could be attributed to the recent correction in the US Dollar (USD).

US Dollar Index (DXY) struggles to snap the previous session’s losses, trading around 106.80 at the time of writing. Improved US bond yields might have limited the potential of the NZD/USD pair.

The 10-year US Treasury yield recovers from its intraday losses and retraces the losses registered in the previous session, standing at 4.75% by the press time.

Additionally, the market seems to be biased toward the US Federal Reserve’s (Fed) hawkish tone regarding interest rate trajectory, which could lend support to the Greenback.

The Reserve Bank of New Zealand (RBNZ) opted to keep the Official Cash Rate (OCR) steady at 5.5% during its October meeting on Wednesday, aligning with market expectations. The committee emphasized the potential necessity for interest rates to stay at a restrictive level for an extended duration, as indicated in the RBNZ statement.

On Thursday, ANZ reported that New Zealand’s Commodity Price for September registered a 1.3% increase, contrasting with the 2.9% decline in the previous period. Additionally, on Tuesday, the NZIER Business Confidence for the third quarter dropped 52%, compared to the previous reading of 63% decline.

Market participants will likely watch the upcoming Jobless Claims on Thursday and Nonfarm Payrolls on Friday, seeking further clues on labor market conditions. Favorable figures in these reports could stimulate additional gains for the USD.

 

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