NZD/USD rebounds above 0.7000, remains on track to post weekly losses
|- NZD/USD staged a decisive rebound in the American session.
- US Dollar Index struggles to hold above 92.50.
- NZD/USD remains on track to close the week in the negative territory.
The NZD/USD pair dropped below 0.6950 in the early American session but managed to make a sharp U-turn. As of writing, the pair was trading at 0.7003, where it was up 0.38% the day. On a weekly basis, NZD/USD remains on track to close in the negative territory despite Friday's rebound.
The renewed USD weakness seems to have fueled NZD/USD's rally in the second half of the day. The US Bureau of Labor Statistics reported on Friday that Nonfarm Payrolls increased by 850,000 in June. Although this reading beat the market expectation of 700,000 is failed to help the greenback gather strength.
Further details of the jobs report showed that the Labor Force Participation Rate stayed unchanged at 61.6% and the Unemployment Rate edged higher to 5.9% from 5.8% in May. Following an immediate spike to a multi-month high of 92.74, the US Dollar Index lost its traction and was last seen losing 0.1% at 92.44.
NZD/USD near-term outlook
Credit Suisse analysts think that NZD/USD could extend its slide with a move below the 0.6945/23 area.
"The ‘measured objective’ to the in-range top still projects a move to 0.6913, which suggests this breakdown will be seen, opening up 0.6875/61 next, with the next initial support then seen at 0.6810/00," analysts added. “Near-term resistance moves to 0.7052/57, then 0.7096/20, which is the ‘neckline’ to the previously highlighted short-term top, which we look to hold if reached. Above here the next level is seen at 0.7161/74, above which would negate the top.”
Additional levels to watch for
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.