- NZD/USD rose sharply amid renewed USD weakness on Friday.
- NZD/USD remains on track to post modest weekly losses.
- US Dollar Index holds above 90.00 after NFP-inspired drop.
After spending the majority of the day consolidating the weekly losses around 0.7050, the NZD/USD pair staged a decisive rebound during the American trading hours and was last seen gaining 0.8% on the day at 0.7200.
USD loses its footing ahead of the weekend
The US Bureau of Labor Statistics reported on Friday that Nonfarm Payrolls rose by 559,000 in May. This print missed the market expectation of 650,000 and triggered a USD selloff with investors expecting the Fed to preserve its dovish stance. Further details of the publication showed the Labor Force Participation ticked down to 61.6% from 61.7% and the Unemployment Rate declined to 5.8% from 6.1%.
Reflecting the negative impact of the uninspiring jobs report on the greenback, the US Dollar Index (DXY) erased a large portion of Thursday’s gains and was last seen losing 0.4% at 90.14.
Meanwhile, Wall Street’s main indexes are posting strong gains on the day, making it difficult for the DXY to retrace its fall. Currently, the S&P 500 and the Nasdaq Composite indexes are up 0.72% and 1.55%, respectively.
NFP Quick Analysis: Dollar buying opportunity? Two reasons why dollar downing is likely temporary.
Technical levels to watch for
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