Monday, October 5, 2015

NZD/USD trading at daily highs post Nonfarm Payrolls

FXStreet (Guatemala) - NZD/USD has been in recovery mode since stabilizing the downside just shy of 0.62 the figure.

NZD/USD reached a daily high on Friday in the US session after the Nonfarm Payrolls report showed that every metric disappointed, and the August series which so often is revised higher, came in lower.

Nonfarm Payrolls miss supports NZD/USD upside

Nonfarm payrolls rose by 142k and that was well below market expectations for a 200k increase. Analysts at Brown Brothers Harriman explained that with the downward revision in August to 136k, it is the second consecutive month below 150k, which has not been experienced since May-June 2012. "This will raise fresh doubts about the US economy and the ability of the Federal Reserve to raise rates, not just this month, but this year."

This leaves NZD/USD in a less negative light while we await the FOMC minutes later this week. A dovish tone will likely keep the bird supported although risk-off sentiment and concerns around global growth could counter the bullish case.

NZD/USD levels

Technically, NZD/USD upside has the 50 DMA at 0.6450 as immediate resistance and it is the first time since late August that the price has penetrated the descending daily MA. 0.6702 is next bullish target while on further supply, 0.6400 and 0.6288 are key levels.
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