NZD/USD remains sideways above 0.6050 amid quiet market mood, US Employment eyed
|- NZD/USD is consolidating above 0.6050 as the market mood is quiet amid an extended weekend in the US economy.
- The US debt-ceiling raise will save the economy from reporting a default but will attract downgrade ratings from credit agencies.
- A power-pack action is anticipated from the USD Index, this week, amid the release of the Employment data.
The NZD/USD pair is demonstrating a sideways performance above the immediate support of 0.6060 in the early Asian session. The Kiwi asset is expected to come out of the woods and display a sheer volatile action as United States markets will open today after an extended weekend.
S&P500 futures are holding decent gains as investors are optimistic that the US debt-ceiling issue will get passage in Congress before June 05. There is no denying the fact that the approval for the US debt-ceiling raise will save the economy from reporting a default but will attract downgrade ratings from credit agencies.
The US Dollar Index (DXY) is consistently facing barricades around 104.30. The upside in the USD index is capped due to approval for an increase in the US borrowing limit while the downside is being supported by expectations that the Federal Reserve (Fed) will hike interest rates further.
This week, the US Employment gamut will remain in the spotlight. On Wednesday, US JOLTS Job Openings data will be released. The economic data is seen falling to 9.35M vs. the prior release of 9.59M. This indicates that firms have slowed down their hiring process due to a bleak economic outlook. Later on, US Automatic Data Processing (ADP) Employment Change (May) will be in focus. As per the consensus, the US economy added fresh 170K jobs in May, lower than the prior addition of 269K.
On the New Zealand Dollar front, Caixin Manufacturing PMI (May) data will remain in the spotlight. The economic data is seen steady at 49.5. Factory activity in China seems failing to show a confident recovery despite the reopening of the economy after a strict lockdown period. A figure of 50.0 is considered a contraction in economic activities.
It is worth noting that New Zealand is one of the leading trading partners of China and a steady factory activity would weigh on the New Zealand Dollar.
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