- NZD/USD is moving into the Asian session around about flat, pivoting on the 0.70 level.
- All eyes are on US President Biden’s speech that will begin shortly.
NZD/USD is currently trading at 0.6982 and ending at the closing bell on Wall Street flat for the day having travelled between a range of 0.6963 and 0.7025 thus far.
As the quarter draws to a close, the focus in markets is with US President Biden’s USD 2.25trn infrastructure spending plan and US job creation with the Nonfarm Payrolls in focus for the end of the week.
US equities have seen the S&P 500 move within a few points away from the 4000 level which marks a new record high for the benchmark.
Meanwhile, the reflation playbook will look for a boost from this week’s jobs data.
On Wednesday, there was a slight miss on the ADP report that showed 517k jobs added in the US for the month of March.
While this missed the market expectations of a 550k rise, compared to that of February’s report, where jobs only managed a 176k gain, it is a sign that the US economy could be turning a corner.
”The report suggests we should see a pretty strong rise in March non-farm payrolls this week,” analysts at ANZ Bank have argued.
There are high expectations for the jobs report this week as many states reopen or scale back lockdown measures. Some economists are expecting it to be the strongest monthly job growth since August.
With that being said, of the higher end of predictions, at +800k growth, that would still leave the total number of nonfarm payrolls more than 8.6m beneath its pre-Covid-19 pandemic peak.
Domestically, there is little new to note from New Zealand.
”We like the NZ story but it is no longer exceptional, and recovery beckons elsewhere, and that will potentially make NZD/USD gains harder to come by in future,” analysts at ANZ bank wrote on Thursday.
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