- NZD/USD pressured in the open on a firmer US dollar.
- Fed expectations underpin the greenback following Friday’s NFP.
NZD/USD is holding near support at 0.6910 in the open, trading down some 0.10% after sliding from 0.6921 at the start of the session. The greenback is firm following Friday’s mixed Nonfarm Payrolls that points to a hawkish Federal Reserve outlook.
On Friday, there was a miss on headline payrolls, but upward back revisions and a lower Unemployment Rate lifted the greenback. 431,000 jobs were added last month, below the estimates of 490,000, although data for February job increases were revised higher. However, the Unemployment rate fell to 3.6%, the lowest since February 2020. This has supported the US dollar.
The DXY index, which measures the greenback vs. a basket of currencies, was higher for the second straight day after two straight down days and is trading back near 98.50. This month’s cycle high near 99.418 should eventually be tested. The US dollar is bid in the open on Monday, now trading in the 98.60s.
”With very little local data out this week and the crucial “25 or 50” RBNZ MPS decision not due till next week, this week is likely to be another week shaped by global events, including the RBA decision tomorrow and Fed minutes on Thursday,” analysts at ANZ Bank said.