NZD / USD holds steady above 0.6900 as reaction from US NFP holders wanes.

• The NZD / USD spiked to a daily high of 0.6959 once the US Non-Farm Payroll headline came to light.
• NZD / USD declines from daily highs as US employment reaction fades.
• Investors seem convinced that a bond phase-down announcement could be made at the next Fed meeting.

The NZD / USD advancing for the second day in a row, it is up 0.14%, trading at 0.6931, during the New York session at the time of writing. The knee-jerk reaction from U.S. nonfarm payrolls wears off, as investors seem convinced that the Federal Reserve will announce reduced pandemic-era stimulus at its next meeting, despite the lousy figure for September.

What reinforces this is the pessimistic sentiment surrounding the markets. European stocks ended with losses, except for the FTSE100, which ended at 7,095.55, 0.25% more. In the US, all major equity indices post losses between 0.11% and 0.48%, while the benchmark 10-year US bond yield increases two and a half basis points (bps) to the 1,598%.

The US dollar index, which measures the dollar’s performance against a basket of rivals, is down 0.11%, currently at 94.10, not keeping up with US Treasury yields.

The US economy adds 194,000 new jobs to the economy
Earlier during the US session, the Bureau of Labor Statistics (BLS) released employment figures. The US Non-Farm Payroll report showed an increase of 194,000 jobs added to the economy, well below the 500,000 expected by economists. However, an August report revised up to 366,000 appears to dampen the Federal Reserve’s prospects for a bond cut announcement for the November FOMC meeting.

Additionally, the labor force participation rate fell 0.1% to 61.6%. Average hourly earnings improved 0.6% in September, the strongest monthly advance since April, while the unemployment rate fell from 5.1% to 4.8%.

ADDITIONAL LEVELS