NZD/USD Faces Sharp Decline Amid Strong NFP Figures

In Friday’s trading session, the NZD/USD experienced a notable downturn, plunging close to the 0.6060 level. This abrupt descent was triggered by the unexpectedly robust US Nonfarm Payrolls report, shattering hopes of imminent rate cuts by the Federal Reserve (Fed). The pair concluded the week with a 0.40% weekly loss.

The US Bureau of Labor Statistics delivered an impressive Nonfarm Payrolls report for January, revealing a substantial increase of 353K jobs, surpassing the consensus of 180K and the previous 333K. Additionally, Average Hourly Earnings for January outperformed expectations, rising by 0.6%, and the yearly measure reached 4.5%, exceeding the anticipated 4.1%. Despite these positive figures, the Unemployment Rate remained steady at 3.7%.

In response to the upbeat data, US bond yields surged across the board, signaling markets’ anticipation of the Fed’s easing cycle commencing in May rather than March. The CME FedWatch Tool reflected a notable decline in the likelihood of a March interest rate cut, now at just 20%, while the probability of a cut in May rose to nearly 58%.

Analyzing the NZD/USD on the daily chart reveals a bearish bias in the short term. Indicators, such as the negative RSI slope and MACD histogram with rising red bars, suggest declining buying power. Although the pair trades below the 20-day and 200-day SMAs, indicating bearish sentiment, it remains above the 100-day SMA, signaling a bullish grip on the broader outlook.



Today last price0.6073
Today Daily Change-0.0067
Today Daily Change %-1.09
Today daily open0.614
Daily SMA200.6155
Daily SMA500.619
Daily SMA1000.606
Daily SMA2000.6087
Previous Daily High0.6143
Previous Daily Low0.6109
Previous Weekly High0.615
Previous Weekly Low0.6061
Previous Monthly High0.6339
Previous Monthly Low0.6061
Daily Fibonacci 38.2%0.613
Daily Fibonacci 61.8%0.6122
Daily Pivot Point S10.6118
Daily Pivot Point S20.6096
Daily Pivot Point S30.6084
Daily Pivot Point R10.6152
Daily Pivot Point R20.6164
Daily Pivot Point R30.6186

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