The New Zealand Dollar is inching higher late Friday after rebounding from an earlier loss. The Kiwi was under pressure shortly after the release of a stronger-than-expected U.S. jobs report because it cemented expectations of another 75 basis-point rate hike at the Federal Reserve’s policy meeting later this month. The currency turned around, however, as the news also eased the chances of a recession, encouraging investors to dump safe-haven U.S. Dollar positions.
At 19:00 GMT, the NZD/USD is trading .6185, up 0.0008 or +0.12%.
The NZD/USD swung between losses and gains on Friday after data showed a bigger than expected increase in U.S. Non-Farm Payrolls in June.
Data released by the U.S. Labor Department showed Non-Farm payroll employment jumped by 372,000 jobs in June after surging by a revised 384,000 jobs in May. Economics had forecast employment to increase by 268,000 jobs.
The report also showed that unemployment remained at 3.6% for the fourth month in a row, matching economist estimates.
Demand for the commodity-linked currency rose but gains were limited as the data eased worries about the economy while also adding to concerns about aggressive interest ratehikes by the Federal Reserve.
Trader reaction to the minor pivot at .6189 is likely to determine the direction of the NZD/USD into the close on Friday.
A sustained move over .6189 will indicate the presence of buyers. If this creates enough upside momentum then look for an intraday surge into the long-term Fibonacci level at .6232. Overcoming this level will indicate the short-covering is getting stronger with another minor pivot at .6261 the next potential target.
A sustained move under .6189 will signal the presence of sellers. This could lead to a retest of the recent minor bottom at .6125.
Taking out .6125 will put the NZD/USD in a position to continue toward its May 15, 2020 main bottom at .5921.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire