NZD/USD rallies to multi-week highs after soft US NFPs


Share:
  • NZD/USD rose by more than 1% to 0.5990, its highest since mid October.
  • The US reported weak NFPs, which triggered a sharp decline in US yields and hawkish bets on the Fed.
  • Eyes on inflation figures from the US from October.


On Friday, the NZD/USD rallied, driven by the US Dollar facing notable selling pressure after the release of the soft labour market, which triggered a decline in US Treasury yields and hawkish bets on the Federal Reserve (Fed) for the December meeting. On the Kiwi’s side, no relevant data was released.

The latest data from the US Bureau of Labor Statistics delivered a blow to market expectations, with the Nonfarm Payrolls for October falling short of projections. The report revealed an addition of 150,000 jobs in the US economy, trailing the anticipated 180,000 and showing a slowdown from the revised prior figure of 297,000. Additionally, the Unemployment Rate for the same period rose to 3.9%, surpassing the projected 3.8%.

Moreover, the Average Hourly Earnings for October exhibited a sluggish monthly growth of 0.2% but managed to climb to 4.1% YoY, surpassing the expected 4% and outpacing the previous figure of 4.3%.

Simultaneously, the US Treasury yields continue to decline, with the 2-year rate hitting its lowest mark since early September at 4.83%. Correspondingly, the longer-term 5 and 10-year rates retreated to approximately 4.50% and 4.54%. Regarding the December meeting of the Fed, the CME FedWatch Tool shows that the probability of a 25 basis points hike in declined to a mere 9%, exacerbating the selling pressure on the Greenback.

On November 14th, the US will report inflation rate figures from October, which investors will closely watch to continue modelling their expectations.

NZD/USD Levels to watch 

Based on the daily chart, NZD/USD maintains a neutral to bullish technical perspective, indicating that the bulls are making strides in regaining control and gathering significant momentum. The Relative Strength Index (RSI) maintains a positive slope above its midline, while the Moving Average Convergence (MACD) histogram exhibits bigger green bars.

However, despite being above the 20-day Simple Moving Average (SMA), the pair is still below the 100 and 200-day, indicating that on the broader outlook, the bears are in command.

 Support levels: 0.5930, 0.5910, 0.5900.

 Resistance levels: 0.6000, 0.6020 (100-day SMA), 0.6050.

 NZD/USD Daily Chart

 

NZD/USD

Overview
Today last price 0.5984
Today Daily Change 0.0085
Today Daily Change % 1.44
Today daily open 0.5899
 
Trends
Daily SMA20 0.5889
Daily SMA50 0.5913
Daily SMA100 0.6022
Daily SMA200 0.6122
 
Levels
Previous Daily High 0.5918
Previous Daily Low 0.5838
Previous Weekly High 0.5874
Previous Weekly Low 0.5772
Previous Monthly High 0.6056
Previous Monthly Low 0.5772
Daily Fibonacci 38.2% 0.5887
Daily Fibonacci 61.8% 0.5868
Daily Pivot Point S1 0.5852
Daily Pivot Point S2 0.5805
Daily Pivot Point S3 0.5772
Daily Pivot Point R1 0.5932
Daily Pivot Point R2 0.5965
Daily Pivot Point R3 0.6012

 

 

Share: Feed news

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.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD grinds lower toward 1.0800 as USD extends recovery

EUR/USD grinds lower toward 1.0800 as USD extends recovery

EUR/USD is grinding lower toward 1.0800 in early European morning on Wednesday. The extended recovery in the US Dollar amid a deterioration in risk sentiment is weighing on the pair, as the focus shifts to a data-packed day ahead. 

EUR/USD News

GBP/USD sticks to lows near 1.2650 on sustained US Dollar strength

GBP/USD sticks to lows near 1.2650 on sustained US Dollar strength

GBP/USD is testing lows near 1.2650 in early Europe on Wednesday. The US Dollar is building its recovery gains amid a cautious mood, ignoring negative US Treasury bond yields. Traders refrain from risk-sensitive assets such as the Pound Sterling ahead of key US data, BoE and Fed speak. 

GBP/USD News

Gold buyers refuse to give up ahead of US macro data

Gold buyers refuse to give up ahead of US macro data

Gold price is duplicating the price action seen during Tuesday’s Asian trading, as bulls attempt another comeback early Wednesday. The USD is building on the previous recovery, despite a minor pullback in the US Treasury bond yields, as markets turn tentative ahead of a fresh batch of US GDP and PCE data due later in the day.

Gold News

Bitcoin price extends gains as capital inflows near all-time highs

Bitcoin price extends gains as capital inflows near all-time highs

Bitcoin (BTC) price remains northbound, a status that was invigorated by Monday reports on MicroStrategy and BlackRock. With growing optimism in the market, the risk appetite for investors is also proving elastic. 

Read more

Twiddling thumbs ahead of a US data barrage

Twiddling thumbs ahead of a US data barrage

Traders are keenly aware that the recent components of the Consumer Price Index (CPI) and Producer Price Index (PPI) have influenced the Personal Consumption Expenditures (PCE), and it is unlikely that they will receive an inflation print below the Federal Reserve's target rate.

Read more

Forex MAJORS

Cryptocurrencies

Signatures