• NZD/USD was the second-best performer vs. USD on Thursday.
  • US Nonfarm Payrolls will now be the key.

Despite a more hawkish sentiment around the Federal Reserve following the set-up in Fed speaker's rhetoric, in including the Fed chair, Jerome Powell's, traders bought the dip on Wall Street. This led to a recovery in risk-FX and pushed the New Zealand dollar higher in a correction to 0.6831 from 0.6799 the low.

It would appear that the US dollar is regarded as overbought. The DXY index, which measures the greenback vs a basket of currencies, was unable to capitalise on the risks surrounding the new coronavirus variant, Omicron nor hawkish Fed speakers.

The greenback, throughout the pandemic, has been regarded as a safe haven and benefitted at times of panic and uncertainty. However, this time around, it has fallen behind the yen, CHF and even the euro. This has enabled the commodity complex to find support and has given some stability to the forex space. 

The Kiwi was the second-best performer against the USD overnight, and the bump in the USD was barely discernible, analysts at ANZ Bank explained.

''Stepping back, the Kiwi continues to hover around 0.68, with the bears citing key support at around 0.6750, and the bulls focussed on typical December seasonality. If buyers are in the wings, they are certainly not revealing themselves. Still, let’s see what tonight’s US jobs numbers look like, as that will set USD direction,'' the analysts argued. 

US Nonfarm Payrolls coming up

Looking ahead, US Nonfarm Payrolls will be key. 'Payrolls probably surged again,'' analysts at TD Securities explained. ''A strong trend continues to be signalled by surveys and claims, but our forecast also reflects the latest Homebase data—with a decline in the Homebase series more than accounted for by seasonality. Along with our +650k forecast for payrolls, we forecast a 0.2pt decline in the unemployment rate and a 0.4%MoM (5.0% YoY) rise in hourly earnings.''

NZD/USD

Overview
Today last price 0.681
Today Daily Change 0.0005
Today Daily Change % 0.07
Today daily open 0.6805
 
Trends
Daily SMA20 0.698
Daily SMA50 0.7022
Daily SMA100 0.7016
Daily SMA200 0.7076
 
Levels
Previous Daily High 0.6868
Previous Daily Low 0.6803
Previous Weekly High 0.7014
Previous Weekly Low 0.6804
Previous Monthly High 0.7199
Previous Monthly Low 0.6773
Daily Fibonacci 38.2% 0.6828
Daily Fibonacci 61.8% 0.6843
Daily Pivot Point S1 0.6783
Daily Pivot Point S2 0.676
Daily Pivot Point S3 0.6718
Daily Pivot Point R1 0.6848
Daily Pivot Point R2 0.689
Daily Pivot Point R3 0.6913

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD holds above 1.0200 amid renewed dollar weakness

EUR/USD holds above 1.0200 amid renewed dollar weakness

EUR/USD has extended its recovery after having advanced beyond 1.0200 in the American session. The greenback continues to weaken against its rivals amid the positive shift witnessed in market mood and fueling the pair's recovery in the second half of the day.

EUR/USD News

GBP/USD clings to modest daily gains above 1.2100

GBP/USD clings to modest daily gains above 1.2100

GBP/USD continues to trade in positive territory above 1.2100 and remains on track to post daily gains. The improving market mood is making it hard for the dollar to outperform its rivals ahead of this week's key inflation report, allowing the pair to stretch higher.

GBP/USD News

Gold bulls looking to overcome the $1,800 barrier

Gold bulls looking to overcome the $1,800 barrier

Gold advanced on Monday, reaching an intraday high of $1,790.01 a troy ounce during the American afternoon, holding nearby. The greenback gave back the Nonfarm Payrolls report-inspired gains and eased on the back of retreating US government bond yields.

Gold News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Are your bags packed for FOMO Season?

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Are your bags packed for FOMO Season?

The crypto market shows strength to start the second trading week of August, and key levels have been identified. Although it's still early market, current prices may be the ultimate discount in hindsight.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures