NZD/USD retreats farther below 0.6700 handle, focus remains on NFP

The pair extends previous session’s rejection slide from 200-DMA.
A modest uptick in the USD/US bond yields adds to the selling bias.
Friday’s key focus will remain on the closely watched US jobs report.

Haresh Menghani FXStreet

The NZD/USD pair traded with a negative bias for the second consecutive session on Friday, albeit has managed to hold its neck above weekly lows set on Tuesday.

The pair continued with its struggled to sustain/build on the momentum beyond the very important 200-day SMA and witnessed some long-unwinding trade on Thursday amid fading optimism over a quick resolution to the prolonged US-China trade disputes.

The corrective slide extended through the early European session on the last trading day of the week and was further weighed down by a modest pickup in the US Dollar demand - further supported by an intraday turnaround in the US Treasury bond yields.

With a rate cut by the Federal Reserve at its July meeting nearly priced in, traders now seemed inclined to cover their bearish USD bets heading into Friday's key event risk - the release of the highly anticipated US monthly jobs report, popularly known as NFP.

The US economy is expected to have added 160K new jobs in June while the unemployment rate is expected to hold steady at 3.6%. Hence, the key focus will remain on average hourly earnings, which might influence the Fed's policy outlook and provide a fresh directional impetus.

Technical levels to watch

NZD/USD

Overview
Today last price	0.6669
Today Daily Change	-0.0016
Today Daily Change %	-0.24
Today daily open	0.6685

Trends
Daily SMA20	0.6616
Daily SMA50	0.6593
Daily SMA100	0.6694
Daily SMA200	0.6712

Levels
Previous Daily High	0.6721
Previous Daily Low	0.6677
Previous Weekly High	0.6722
Previous Weekly Low	0.6587
Previous Monthly High	0.6722
Previous Monthly Low	0.6487
Daily Fibonacci 38.2%	0.6694
Daily Fibonacci 61.8%	0.6704
Daily Pivot Point S1	0.6668
Daily Pivot Point S2	0.665
Daily Pivot Point S3	0.6624
Daily Pivot Point R1	0.6712
Daily Pivot Point R2	0.6738
Daily Pivot Point R3	0.6756

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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