NZD/USD loses momentum below 0.6170, eyes on US NFP data
- NZD/USD loses ground near 0.6165 amid the cautious mood.
- New Zealand Manufacturing Sales for Q3 arrived at -2.7% vs. 2.9% prior.
- US Initial Jobless Claims showed 220,000 from the previous week of 218,000.
- Traders await the highly-anticipated US Nonfarm Payrolls data, due later on Friday.
The NZD/USD pair snaps the two-day winning streak during the early Asian session on Friday. Traders turn to a cautious mood ahead of the highly-anticipated US Nonfarm Payrolls (NFP), which is likely to trigger volatility in the market. At press time, NZD/USD is trading at 0.6165, losing 0.10% on the day.
Earlier Friday, New Zealand Manufacturing Sales for the third quarter (Q3) fell 2.7% from a 2.9% rise in the previous reading. Earlier this week, the nation’s ANZ Commodity Price came in at a 1.3% drop in November from a 2.9% rise in October, while the Terms of Trade Index for the third quarter (Q3) declined 0.6% QoQ versus 0.3% prior.
Furthermore, the Reserve Bank of New Zealand's (RBNZ) hawkish stance boosts the New Zealand Dollar (NZD) and acts as a tailwind for the NZD/USD pair. Last week, the RBNZ kept the cash rate at 5.5% but emphasized that inflation remained too high and that additional policy tightening may be needed if price pressures did not ease.
On the USD’s front, the US Initial Jobless Claims showed 220,000 in the week ending December 2 from the previous week of 218,000. Continuing Claims fell to 1.861M versus 1.925M prior. Nonetheless, the US employment data on Friday could offer some hints about the labor market condition in the US.
Market players will closely monitor the US Nonfarm Payrolls data, which is expected to add 180,000 jobs in November. The Unemployment Rate is estimated to remain steady at 3.9%. If the reports showed weaker-than-expected results, this could exert some selling pressure on the US Dollar.
Author
Lallalit Srijandorn
FXStreet
Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.
