NZD/USD downside playing out, watch 0.6620

By FXStreet FXStreet (Guatemala) – NZD/USD is currently trading at 0.6641 with a high of 0.6669 and a low of 0.6636.

NZD/USD has been an underperformer of the back of the Fonterra dairy auction and the recently publish jobs data for Q3. The kiwi dropped after the employment change was offering a big miss at -0.4% vs 0.4% expected and 50.9 previous. At the same time, the Participation rate was 68.6% vs an expected 69.3%, while prior was 69.3% and wages growth were also disappointing.

This data is keenly monitored by both the market and the RBNZ and with an already dovish outlook, the December meeting and prospects for a rate cut have been tipped more so into the hands of the doves as the NZ economy continues to struggle. We now await the US data tonight with Fed Yellen speaking, Dudley and Stanley along with the ADP report that as on occasions can be a good indicator as to the result of the government data in the Nonfarm Payrolls that follow in the same week.

After a dismal print last month, this month is expected to be positive. Analysts at TD Securities explained, we expect the US labor market to snap …read more

Source:: FX Street