- NZD / USD rises sharply after closing deeply lower on Tuesday.
- Improving market sentiment is helping the NZD / USD to rise.
The pair NZD / USD it closed in negative territory on Tuesday, but had no difficulty reversing its direction. At time of writing, the pair was up 0.76% on the day at 0.7197.
NZD capitalizes on optimistic jobs report
Hours earlier, data from New Zealand showed that the unemployment rate dropped to 4.7% in the first quarter. This reading was better than the market expectation and 4.9% from the previous quarter and helped the kiwi outperform its rivals. Furthermore, the participation rate improved from 70.2% to 70.4%.
On the other hand, improving market sentiment is weighing on the dollar on Wednesday and allowing NZD / USD to preserve its bullish momentum. At the moment, S&P 500 futures are up 0.4% on the day.
If the major Wall Street indices manage to open decisively higher, the DXY is likely to remain on the defensive in the second half of the day.
The employment report prepared by ADP indicated that the US private sector increased jobs by 742,000 in April, below the 800,000 expected. In March there had been an increase in private payrolls of 565,000 (revised up from 517,000). Later in the session the figures for the ISM services PMI will be known. On Thursday, ANZ Business Confidence and ANZ Activity Outlook will be released from New Zealand during Asian business hours.
Technical levels
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