In the American session, the NZD/USD made a strong comeback.
The US Dollar Index is battling to stay above 92.50.
The NZD/USD exchange rate is expected to end the week in the red.
In the early American session, the NZD/USD pair fell below 0.6950, but quickly recovered. The pair was trading at 0.7003 as of this writing, up 0.38 percent on the day. Despite Friday’s bounce, the NZD/USD is still on track to end the week in negative territory.
The NZD/USD surge in the second half of the day appears to have been spurred by renewed USD weakness. Nonfarm Payrolls climbed by 850,000 in June, according to the US Bureau of Labor Statistics. Despite the fact that this number was higher than the market’s projection of 700,000, it did not help the dollar gain ground.
The Labor Force Participation Rate remained constant at 61.6 percent, but the Unemployment Rate increased to 5.9 percent from 5.8 percent in May, according to additional figures from the jobs report. Following an instant jump to a multi-month high of 92.74, the US Dollar Index has lost 0.1 percent of its value and is currently trading at 92.44.
A move below the 0.6945/23 region, according to Credit Suisse analysts, might extend the NZD/decline. USD’s
“The’measured goal’ to the in-range top still projects a move to 0.6913, which means this breakdown will occur, opening up 0.6875/61 next, with 0.6810/00 as the next initial support,” experts added. “Near-term resistance is around 0.7052/57, then 0.7096/20, the ‘neckline’ of the previously mentioned short-term top, which we expect to hold if hit. The following level is seen above this at 0.7161/74, which would negate the top.”/n
