NZD/USD retreats to 0.7050 area despite broad USD weakness

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  • NZD/USD is consolidating weekly gains around 0.7050 on Friday.
  • US Dollar Index stays in red near 90.60 ahead of NFP data.
  • Wall Street’s main indexes look to open in the positive territory.

After rising to its highest level since April 2018 at 0.7106 on Thursday, the NZD/USD pair closed virtually unchanged and started to edge lower on Friday. As of writing, the pair was down 0.33% on a daily basis at 0.7050.

USD fails to stage a rebound ahead of NFP data

Despite the heavy selling pressure surrounding the USD, NZD/USD seems to be struggling to preserve its bullish momentum. However, the lack of significant fundamental catalysts suggests that Friday’s decline is a technical correction rather than a fundamentally-driven pullback.

Later in the session, the US Bureau of Labor Statistics’ Nonfarm Payrolls (NFP) report will be watched closely by the market participants. Investors expect the NFP to come in at +469,000 in November following October’s increase of 638,000 and see the Unemployment Rate edging lower to 6.8% from 6.9%. 

Ahead of the US jobs report, the S&P 500 Futures are up 0.3% and the impact of the NFP data on the market sentiment is likely to drive the USD’s market valuation in the second half of the day. An upbeat reading could cause the greenback to remain on the back foot and help NZD/USD limit its losses and vice versa. At the moment, the US Dollar Index is posting small losses on the day at 90.60.

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