NZD/USD clings to modest gains near 0.6930, eyes on US NFP data
- NZD/USD staged a modest rebound after declining toward 0.6900.
- US Dollar Index pulls away from session tops, holds above 94.00.
- Nonfarm Payrolls in US is expected to rise by 500,000 in September.
The NZD/USD pair closed modestly higher on Thursday and spent the Asian session moving sideways in a tight range. After edging lower toward 0.6900 during the European trading hours, however, the pair reversed its direction and was last seen trading at 0.6930, where it was up 0.1% on a daily basis.
Eyes on NFP
In the absence of high-impact macroeconomic data releases, the USD's market valuation continues to drive NZD/USD's movements. Earlier in the day, rising US Treasury bond yields provided a boost to the greenback and the US Dollar Index (DXY) climbed to a daily high of 94.34.
Nevertheless, investors remain hesitant to take large positions ahead of the US Bureau of Labor Statistics' September jobs report and the DXY is currently flat on the day near 94.20.
Investors expect Nonfarm Payrolls (NFP) to rise by 500,000 following August's uninspiring increase of 235,000. Moreover, the Unemployment Rate is forecast to edge lower to 5.1% with the Labor Force Participation Rate remaining steady at 61.7%.
Previewing the NFP data, "the Fed’s evident desire to begin tapering its bond program means that September Nonfarm Payrolls at or better than forecast, is a green light for a November announcement," said FXStreet Senior Analyst Joseph Trevisani. "October’s job numbers are not reported until Friday, November 5, two days after the Fed meeting."
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
