- The NZD / USD fell sharply in the second half of the day on Friday.
- The US Dollar Index moves higher towards 93.00 after the strong jobs report.
- Nonfarm payrolls in the US increased by 943,000 in July.
The pair NZD / USD it declined sharply ahead of the weekend amid renewed USD strength and was last seen shedding 0.62% on the day at 0.7010. Following the rally seen earlier in the week following the upbeat New Zealand jobs report, the pair is now on track to end the week largely unchanged.
DXY increases after NFP data
Data released by the US Bureau of Labor Statistics revealed on Friday that nonfarm payrolls increased by 943,000 in July. This reading beat the market expectation of 870,000 and provided a boost to the dollar. Additionally, the June figure was revised to 938,000 from 850,000.
Additionally, the unemployment rate fell to 5.4% from 5.9% and beat analysts’ estimate of 5.7%. The US Dollar Index, which spent most of the day moving sideways near 92.20, is currently up 0.6% to 92.81.
Commenting on the US labor market report, “The better-than-expected July report is certainly a step in the direction of the ‘additional substantial progress’ the Fed is seeking,” Wells Fargo analysts noted. . “We continue to look for the factors that currently limit the labor supply to alleviate this decline, which should keep hiring strong.”
Technical levels
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