- The NZD / USD capitalized on risk flows in the American session.
- The US Dollar Index appears to close below 92.30.
- All eyes on the US nonfarm payroll data for August.
The pair NZD / USD it extended its rally during US trading hours on Thursday and reached its highest level since early June at 0.7120 before entering a consolidation phase. At time of writing, the pair was up 0.6% on the day at 0.7110.
USD selloff remains intact ahead of NFP data
The observed positive shift in market sentiment provided a boost to risk-sensitive in the second half of the day, while making it difficult for the dollar to find demand.
Reflecting the widespread weakness of the USD, the US Dollar Index remains on track to post its lowest daily close in nearly a month below 92.30. On the other hand, the S&P 500 Index is at the new record it set at 4,545 after the opening bell.
Hours earlier, US data showed initial jobless claims dropped to 340,000 in the week ending Aug. 28, compared with analysts’ estimate of 345,000. Additionally, Challenger’s job cuts in August fell to the lowest level since 1997 at 15,723.
On Friday, the US Bureau of Economic Analysis will release the August jobs report. Investors expect nonfarm payrolls to rise by 750,000 in August after July’s impressive 943,000.
With a preview of this data, “the most significant statistic for the Federal Reserve’s critical September decision is August non-farm payrolls, and a combination of exaggerated low expectations and excessive dollar shorts could trigger a big rebound.” said FXStreet analyst Yohay Elam.
Technical levels
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