- NZD / USD rose sharply amid renewed USD weakness on Friday.
- NZD / USD remains on track to post modest weekly losses.
- The US Dollar Index remains above 90.00 after the NFP-inspired drop.
After spending most of the day consolidating weekly losses around 0.7050, the pair NZD / USD saw a decisive rally during US business hours and was last seen gaining 0.8% on the day at 0.7200.
USD loses balance before the weekend
The US Bureau of Labor Statistics reported Friday that nonfarm payrolls increased by 559,000 in May. This figure disappointed the market expectation of 650,000 causing a selloff in US dollars and investors expect the Federal Reserve to maintain its dovish stance. Further details from the release showed that the Labor Force Participation fell to 61.6% from 61.7% and the Unemployment Rate decreased to 5.8% from 6.1%.
Reflecting the negative impact of the uninspiring jobs report on the dollar, the US Dollar Index (DXY) erased a large chunk of Thursday’s gains and was last seen shedding 0.4% to 90.14.
Meanwhile, the major Wall Street indices are posting strong gains on the day, making it difficult for the DXY to reverse its slide. Currently, the S&P 500 and Nasdaq Composite indices are up 0.72% and 1.55%, respectively.
Technical levels
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