New Zealand Dollar pressured by strong US labor-market data

US JOLTS Job Openings jumped to 7.618 million in April, the highest level since May 2024.
Stronger US labor-market data supported the US Dollar and reduced expectations for Fed rate cuts.
Markets remain mainly driven by US labor market figures.

Agustin Wazne FXStreet

The NZD/USD pair trades near the 0.5930 region on Wednesday as the United States (US) Dollar (USD) strengthens following upbeat labor-market data, while investors remain cautious ahead of upcoming economic releases from New Zealand. At the time of writing, the pair declines around 0.15%.

The latest Job Openings and Labor Turnover Survey (JOLTS) showed US job openings surged to 7.618 million in April from a revised 6.887 million in March, well above market expectations of 6.88 million. The reading marked the highest level since May 2024 and reinforced confidence in the resilience of the US labor market.

With no major New Zealand data released during the session, NZD/USD remains mainly driven by US labor-market figures, Treasury yields, and broader demand for the Greenback.

Short-term technical analysis:

On the four-hour chart, NZD/USD trades at 0.5923, maintaining a capped tone as it holds above the 100-period Simple Moving Average (SMA) at 0.5896 but remains below the 20-period SMA at 0.5950 and nearby horizontal barriers. Immediate pressure is reinforced by a fading Relative Strength Index (RSI) around 47, which hints that bullish momentum has cooled after the recent rejection from overbought territory.

On the topside, initial resistance is aligned at 0.5926, with a stronger barrier at 0.5937 and the 20-period SMA at 0.5950 forming a broader supply zone. On the downside, first support is seen at 0.5922, followed by 0.5918; a break there would expose the 100-period SMA support near 0.5896.

(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 struggles near 0.7150 as Fed hike bets and Middle East risks underpin USD

AUD/USD kicks off the new week on a weak note and hovers near Friday's low, around mid-0.7100s, as the US Dollar holds up on rising Fed rate-hike bets, bolstered by the US CPI. Furthermore, escalating Middle East tensions and clashes in the Strait of Hormuz underpin the safe-haven USD. However, hawkish RBA expectations could help limit deeper losses for the Aussie.

USD/JPY holds steady near mid-153.00s as traders await Fed/BoJ rate decisions

USD/JPY consolidates near a seven-month low touched last Tuesday as traders move to the sidelines ahead of the FOMC decision on Wednesday and the BoJ policy update on Friday. Meanwhile, a more hawkish repricing of the BoJ's normalization path supports the Japanese Yen, while rising Fed rate-hike bets and geopolitical risks underpin the US Dollar, leading to the pair's subdued price action at the start of the new week.

Gold consolidates above $4,300 as traders await Fed rate decision this week

Gold struggles to capitalize on Friday's modest bounce from sub-$4,300 levels and kicks off the new week on a subdued note as traders move to the sidelines ahead of a slew of central bank events. Meanwhile, the latest US inflation figures reaffirmed September Fed rate-hike bets and cap the non-yielding bullion. Moreover, escalating US-Iran tensions act as a tailwind for the safe-haven US Dollar, keeping XAU/USD bulls on the back foot.

Week ahead: Fed, BoJ and BoE decide amid inflation dilemma

A crucial central bank week looms for markets as both the Federal Reserve and Bank of Japan are under pressure from all sides, with their credibility at stake. The Bank of England looks set to have an easier ride, at least for now, while inflation releases will be watched too as war continues to rage in the Middle East.

CFTC Report: Japanese Yen reversal leads a broader positioning reset

The week in one sentence: Yen positioning swung back into net longs in the week to September 8, leading to a 103.0K-contract improvement. Canadian Dollar shorts also fell sharply, while Oil buying accompanied another price rise. Euro, Sterling and Swiss Franc positioning weakened despite firmer currencies, leaving those moves unconfirmed by speculative flows.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.