NZD/USD: taking on the 100 DMA

By FXStreet FXStreet (Guatemala) – NZD/USD has dropped on the back of the decent nonfarm payrolls result that boosted the greenback across the board. US grew 292k jobs in December and the October and November job growth was revised up by 50k.

“The unemployment rate was unchanged at 5.0%, even though the participation rate ticked up,” noted analysts at BBH. “If there was a disappointment it was that hourly earnings did not rise as much as expected. Earnings still grew 2.5% year-over-year vs. 2.3% in November. The market had expected a 2.7% pace. Still, it is the upper end of the cycle.”

At the end of the Asian week, Chinese markets settled down and allowed kiwi traders time to catch their breath ahead of the nonfarm payrolls. NZD/USD has otherwise developed a very strong bear trend at the start of 2016, falling from above 0.6860 and losing over 3 cents in one week’s worth of risk-off trade. There will be more to come from China in the trade balance and the US dollar should remain underpinned with this jobs result leaving the downside exposed in the pair.

NZD/USD levels

Technically, the 100 DMA at 0.6578 has been eroded and closes …read more

Source:: FX Street