NZD/USD oscillates in a 0.6550-0.6560 range ahead of US NFP

NZD/USD is juggling a 10-pips range as investors’ focus is shifted to the US NFP.
Investors should brace for volatility in the DXY on lower forecasts of NFPs.
The RBNZ will reach neutral rates sooner than other Western leaders.

Sagar Dua FXStreet

The NZD/USD pair is displaying a balanced profile in a narrow range of 0.6551-0.6561 in the early European session. The anxiety over the release of the US Nonfarm Payrolls (NFP) has sidelined the market participants. The boring activity could be the optimal tag to define the current performance of the FX domain.

As per the market consensus, 325k fresh payrolls are expected to release by the US Bureau of Labor Statistics for May. However, the payroll data from the Automatic Data Processing (ADP) Employment Change has trimmed the forecasts for NFPs significantly.

The ADP Employment Change has reported that the US economy has managed to add 128k jobs in the labor market. Therefore, expectations of 325k additional jobs in May would be meaningless. One more thing, investors should consider is the former and 10-month average NFP print. In April, the NFP landed at 428k while the 12-month average NFP is 551.6k. A serious plunge in the NFP for May is going to hurt the US dollar index (DXY) principally.

On the kiwi front, the pace of hiking interest rates by the Reserve Bank of New Zealand (RBNZ) is much faster than other Western leaders. Therefore, the RBNZ will reach neutral rates sooner than other major central banks. It would be worth seeing whether the quick rate hikes by the RBNZ will perform the required job effectively or not.

NZD/USD

Overview
Today last price	0.6556
Today Daily Change	-0.0002
Today Daily Change %	-0.03
Today daily open	0.6558

Trends
Daily SMA20	0.6402
Daily SMA50	0.6621
Daily SMA100	0.6682
Daily SMA200	0.6822

Levels
Previous Daily High	0.6565
Previous Daily Low	0.646
Previous Weekly High	0.655
Previous Weekly Low	0.639
Previous Monthly High	0.6569
Previous Monthly Low	0.6217
Daily Fibonacci 38.2%	0.6525
Daily Fibonacci 61.8%	0.65
Daily Pivot Point S1	0.649
Daily Pivot Point S2	0.6423
Daily Pivot Point S3	0.6385
Daily Pivot Point R1	0.6595
Daily Pivot Point R2	0.6633
Daily Pivot Point R3	0.67

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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