NZD/USD approaches 0.6080 as USD Index prepares for a fresh downside, US NFP in focus

NZD/USD is aiming to recapture 0.6080 as the USD Index is preparing for a fresh downside.
US equities have managed to maintain Thursday’s bullish sentiment, portraying an upbeat market mood.
Hopes of a recession and weak economic activities are supporting a pause in the Fed’s policy-tightening spell.

Sagar Dua FXStreet

The NZD/USD pair has moved to near the crucial resistance of 0.6080 in the Asian session. The Kiwi asset has gained strength as the US Dollar Index (DXY) is preparing for a fresh downside. The USD Index is expected to refresh its weekly low below 103.50 as support for a pause in the Federal Reserve (Fed)’s rate-hiking spell by some Fed policymakers has trimmed its appeal.

S&P500 futures have added some gains in Asia. US equities have managed to maintain Thursday’s bullish sentiment, portraying an improvement in the risk-appetite theme. A cheerful market mood has improved the demand for US government bonds. This has led to a sheer decline in the 10-year US Treasury yields to 3.6%.

The USD Index is expected to extend its downside journey as Fed policymakers are divided about June’s monetary policy. Hopes of a recession and weak economic activities are supporting a pause in the policy-tightening spell while stubborn core inflation and upbeat labor market conditions are favoring one more interest rate hike.

Going forward, the release of the United States Nonfarm Payrolls (NFP) data will provide clear guidance. Analysts at TD Securities see US payrolls slowing modestly in May, advancing at a still strong 200K pace for a second consecutive month. They also look for the Unemployment Rate to stay unchanged at a historical low of 3.4%, and for wage growth to print 0.3% MoM (4.4% YoY).

On the Kiwi front, upbeat Caixin Manufacturing PMI (May) infused fresh blood into the New Zealand Dollar. The economic data has landed at 50.9, higher than the consensus and the prior release of 49.5. A figure above 50.0 bifurcates expansion and contraction phases and Chinese factory activities have landed in expansionary territory.

It is worth noting that New Zealand is one of the leading trading partners of China and upbeat Chinese factory activities support the New Zealand Dollar.

NZD/USD

Overview
Today last price	0.6073
Today Daily Change	0.0002
Today Daily Change %	0.03
Today daily open	0.6071

Trends
Daily SMA20	0.6192
Daily SMA50	0.6207
Daily SMA100	0.6254
Daily SMA200	0.615

Levels
Previous Daily High	0.6078
Previous Daily Low	0.599
Previous Weekly High	0.6303
Previous Weekly Low	0.6032
Previous Monthly High	0.6385
Previous Monthly Low	0.5985
Daily Fibonacci 38.2%	0.6044
Daily Fibonacci 61.8%	0.6024
Daily Pivot Point S1	0.6014
Daily Pivot Point S2	0.5958
Daily Pivot Point S3	0.5926
Daily Pivot Point R1	0.6102
Daily Pivot Point R2	0.6134
Daily Pivot Point R3	0.619

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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