New Zealand Dollar plunges to two-month lows after upbeat US NFP report

US Nonfarm Payrolls increased by 172K in May, beating expectations of 85K.
The Unemployment Rate held at 4.3%, while wage growth eased to 3.4%.
The New Zealand Dollar hit its lowest level since April 8.

Agustin Wazne FXStreet

NZD/USD falls sharply towards the 0.5790 region on Friday as the US Dollar (USD) strengthened following a stronger-than-expected Nonfarm Payrolls (NFP) report, while the New Zealand Dollar (NZD) struggled to attract buyers amid a cautious market mood. At the time of writing, the pair trades at 0.5791, its lowest level in the last two months.

The Bureau of Labor Statistics reported that the United States (US) economy added 172K jobs in May, significantly above market expectations of 85K and following an upwardly revised gain of 179K in April.

Meanwhile, the Unemployment Rate held steady at 4.3%, while annual wage growth eased to 3.4% from 3.6%. The data reinforced the view that the labor market remains resilient and puts pressure on the Federal Reserve (Fed) to keep interest rates higher-for-longer or even raise them, supporting the Greenback.

Next week, markets will closely watch the US Consumer Price Index (CPI) report and labor data, while New Zealand will release the Business NZ Performance of Manufacturing Index (PMI).

Short-term technical analysis:

On the 4-hour chart, NZD/USD trades at 0.5793, extending its downside bias as price remains below both the 20-period Simple Moving Average (SMA) at 0.5871 and the 100-period SMA at 0.5882. This configuration reinforces a bearish near-term tone, even as the Relative Strength Index (RSI) slips into oversold territory near 23, hinting that while sellers remain in control, the downside could become more vulnerable to corrective rebounds.

On the topside, initial resistance is located at 0.5802, followed by a tighter cap at 0.5813 and then 0.5843, where prior horizontal levels may attract renewed supply. Above these, the 20-period SMA at 0.5871 and the 100-period SMA at 0.5882 add to a broader resistance band that would need to be reclaimed to ease bearish pressure. On the downside, immediate support emerges at 0.5790; a decisive break lower would expose fresh lows and keep the bears firmly in charge.

(The technical analysis of this story was written with the help of an AI tool.)

Author

Agustin Wazne

FXStreet

Agustin Wazne joined FXStreet as a Junior News Editor, focusing on Commodities and covering Majors.

AUD/USD consolidates above 0.7000; remains close to monthly top

AUD/USD holds steady above 0.7000 during the Asian session on Friday, trading just below the previous day's monthly low amid diverging forces. A hawkish RBA continues to support the Aussie, while the recent decline in US bond yields keeps the US Dollar depressed near a three-week low. However, oil-driven inflation fears reinforce Fed hike bets, which, along with geopolitical risks, could benefit the safe-haven buck and cap the currency pair.

USD/JPY bounces off one-month low; climbs to 157.00 amid reviving USD demand

USD/JPY rebounds from the 156.00 neighborhood, or a one-month low touched during Friday’s Asian session, with bulls looking to extend momentum beyond 157.00 amid the emergence of some US Dollar buying. Meanwhile, Japan's National CPI rose to a nine-month peak and reaffirmed BoJ rate-hike bets, which could support the Japanese Yen and cap gains for the currency pair.

Gold treads water around $4,000

Gold prices maintain its offered stance in place at the end of the week, hovering around the key $4,000 threshold per troy ounce. The persistent selling bias in the precious metal comes amid decent gains in the US Dollar and an acceptable rebound in US Treasury yields across the curve, all alongside further upside traction in crude oil prices.

Crypto Today: Bitcoin holds the 50-day EMA as Ethereum and XRP face structural resistance

Bitcoin gradually ticks up on Friday, trading above $81,000. The Crypto King has recently defended structural support near $80,000, reinforcing the prevailing bullish outlook. Ethereum similarly edges higher above $2,400, while Ripple trades above $1.32 after testing support around $1.30.

The French bond panic is overdone. Here's what the market is misreading

France's 10-year government bond yield has climbed above 5%, reigniting fears of a sovereign debt crisis in the Eurozone. With public debt exceeding €3.5 trillion, persistent budget deficits and a fragmented political landscape, investors are increasingly questioning the French government's ability to stabilize its finances.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.