NZD/USD drops toward 0.6300 after NFP

By FXStreet FXStreet (Córdoba) – NZD/USD is testing weekly lows as it trades slightly above 0.6310. Earlier the pair was rising modestly holding above 0.6350 but after the US employment report, jumped to 0.6395 but then reversed sharply and fell almost a hundred pips from the highs.

Price bottomed at 0.6310 and currently stands at 0.6312/15, down 1.33% for the day as the US dollar climbs against commodity currencies.

NZD/USD after a mixed NFP report

US nonfarm payrolls showed an increase of 173K in August, below expectations. But previous months were revised higher, hourly earnings rose 0.3% (above the 0.2% expected) and the unemployment rate fell from 5.3% to 5.1%. While the headline was weak, the rest of the data was constructive.

Greenback gained momentum in the market after the report that pushed modestly higher expectations of a rate hike in September by the Federal Reserve. The kiwi lost ground and so far is the worst performer, among the most traded currencies.

NZD/USD so far has been able to hold above 0.6310 where Tuesday’s lows are located. A break lower could add bearish pressure to the pair, while if it holds on top, it could push for a bullish correction.
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Source:: FX Street