Kiwi cycles on Thursday amidst pre-NFP market churn, NZD/USD circles 0.6250

NZD/USD shuffles in place as investors jockey for position ahead of Friday’s US NFP.
Early Thursday saw risk appetite take a step higher on China data beats.
A surge in labor preview data is giving traders cause for pause.

Joshua Gibson FXStreet

The NZD/USD kicked into an early intraday peak of 0.6286 in the first half of Thursday’s trading, propped up by Chinese Services Purchasing Managers’ Index (PMI) figures beating expectations, but a surge in US labor and jobless claims sees investors pulling back to familiar midranges ahead of Friday’s US Nonfarm Payrolls (NFP labor print.

China’s Caixin Services PMI rebounded to 52.9 in December, hurdling over the forecast uptick from November’s 51.5 to 51.6. Coupled with China’s forecast beat in the Manufacturing component of the Caixin PMIs, Asia market session risk appetite was planted firmly in risk-on mode.

The US ADP Employment Change for December jumped unexpectedly to 164K, easily clearing the forecast 115K and hurdling over November’s 101K ADP jobs additions (revised slightly lower from 102K).

US Initial Jobless Claims also beat expectations, showing 202K new jobless benefits seekers for the week ended December 29 compared to the forecast 216K and dropping even further away from the previous week’s 220K (revised upwards slightly from 218K).

Friday’s US NFP is currently forecast to step down from November’s 199K to 170K in December, and December’s annualized Average Hourly Earnings growth is expected to tick down slightly from 4.0% to 3.9% MoM.

NZD/USD Technical Outlook

The Kiwi’s up-and-down action on Thursday sent the pair towards the 0.6300 handle before markets reserved direction, dragging the NZD/USD back into the week’s bottom bids near 0.6220. The Kiwi continues to trade on the low side of the 200-hour Simple Moving Average (SMA), which is declining into the 0.6300 price level and acting as a near-term technical ceiling.

A slim decline at Thursday’s close leaves the Kiwi closing down or flat for a sixth consecutive day, and the NZD/USD is still down nearly 3% from December’s peak bids at 0.6410. Looking further out, additional declines will be set for a technical challenge from the 50-day and 200-day SMAs confirming a bullish cross near 0.6100.

NZD/USD Hourly Chart

NZD/USD Daily Chart

NZD/USD Technical Levels

NZD/USD

Overview
Today last price	0.6232
Today Daily Change	-0.0013
Today Daily Change %	-0.21
Today daily open	0.6245

Trends
Daily SMA20	0.6246
Daily SMA50	0.6097
Daily SMA100	0.6011
Daily SMA200	0.6093

Levels
Previous Daily High	0.6277
Previous Daily Low	0.6219
Previous Weekly High	0.641
Previous Weekly Low	0.6264
Previous Monthly High	0.641
Previous Monthly Low	0.6084
Daily Fibonacci 38.2%	0.6241
Daily Fibonacci 61.8%	0.6255
Daily Pivot Point S1	0.6217
Daily Pivot Point S2	0.6189
Daily Pivot Point S3	0.6159
Daily Pivot Point R1	0.6275
Daily Pivot Point R2	0.6305
Daily Pivot Point R3	0.6333

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

EUR/USD sticks to positive bias above 1.1800 as trade jitters undermine USD

The EUR/USD pair builds on the previous day's modest gains and attracts some buyers for the second straight day on Thursday amid a softer US Dollar. Spot prices, however, lack bullish conviction and trade around the 1.1815-1.1820 area during the Asian session, up 0.10% for the day.

GBP/USD extends recovery to near 20-day EMA as US Dollar weakens

The Pound Sterling holds onto weekly gains around 1.3565 against the US Dollar during the Asian trading session on Thursday. The GBP/USD pair trades firmly as the US Dollar remains under pressure due to uncertainty surrounding the United States trade policy outlook.

Gold struggle with $5,200 extends ahead of more US-Iran talks

Gold is replicating the recovery moves seen in Wednesday’s Asian trading early Thursday, as buyers continue to flirt with the $5,200 level. Sustained US Dollar weakness and looming US-Iran talks aid the bright metal’s rebound.

Top Crypto Gainers: Polkadot, Near Protocol, Uniswap lead market rebound

Altcoins, such as Polkadot, Near Protocol, and Uniswap, are leading gains over the last 24 hours as Bitcoin jumped 6% on Wednesday. The altcoins are holding steady at press time on Thursday following a rebound the previous day, testing the waters around their 50-day Exponential Moving Average.

Nvidia delivers another monster earnings report, and forecasts big things to come

It was another monster earnings report from Nvidia for fiscal Q4. Revenues were $68.1bn, smashing estimates of $65bn. Gross profit margin was a healthy 75%, up from 73.5% in the prior quarter, and the outlook for this quarter was monstrous.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.