NZD/USD stays on the back foot near 0.6960, eyes on US NFP data
- NZD/USD stays in the negative territory on Friday.
- US Dollar Index stays near multi-month highs set earlier in the day.
- Nonfarm Payrolls data from the US is coming up next.
The NZD/USD pair extended its weekly slide and touched its lowest level in nearly two weeks at 0.6951 before staging a modest rebound. As of writing, the pair was down 0.2% on a daily basis at 0.6962.
Earlier in the day, the data from New Zealand revealed that the ANZ - Roy Morgan Consumer Confidence Index stayed virtually unchanged at 114.1 in June and this print failed to trigger a noticeable market reaction.
DXY rally pauses ahead of NFP data
On the other hand, the USD strength remains unabated ahead of the US Bureau of Labor Statistics' June jobs report. On Thursday, the ISM reported that the Manufacturing PMI edged slightly lower to 60.6 in June from 61.2 in May. However, the Prices Paid component of the PMI reached a new series-high of 92.1 and revived concerns over increasing price pressures. On the back of this data, the US Dollar Index (DXY) preserved its bullish momentum and reached its highest level since early April at 92.69 on Friday. At the moment, the DXY is up 0.12% on the day at 92.64.
Nonfarm Payrolls (NFP) in the US is forecast to increase by 700,000 in June with the Unemployment Rate ticking down to 5.7% from 5.8% in May. A higher-than-expected NFP print is likely to provide a boost to the USD and vice versa.
NFP Preview: Four reasons why June's jobs report could be a dollar downer.
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.
