NZD / USD struggles to make a convincing bounce, appears to close around 0.7150

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  • NZD / USD is still on track to close for the third day in a row lower.
  • The US Dollar Index clings to gains around 92.00.
  • Nonfarm payrolls in the US increased by 379,000 in February.

After the sharp fall on Thursday, the pair NZD / USD it extended its slide on Friday and hit its lowest level since mid-January at 0.7101. Although the pair was able to break away from its lows, it remains deep in negative territory in the latest US session and was last seen shedding 0.68% on the day at 0.7140. On a weekly basis, the pair is down almost 100 pips.

The USD capitalizes on strong US labor market data.

The USD continued to pick up steam ahead of the weekend after data released by the US Bureau of Labor Statistics showed February nonfarm payrolls increased by 379,000. This reading beat the market expectation of 182,000 by a wide margin. Furthermore, the report revealed that the Unemployment Rate fell to 6.2% from 6.3%.

Commenting on the US employment report, “the dollar king may feel more comfortable on his throne. The Fed appears content with its current policy and is unlikely to back down, at least not until its next meeting on March 17.” said FXStreet analyst Yohay Elam. “All in all, the wait for the NFP has caused a hiatus in dollar gains, and now the dollar has a fresh green light for earnings.”

With the initial reaction, the 10-year US Treasury yield rose to its highest level in more than a year at 1.622% and gave the dollar a boost. The US Dollar Index (DXY) rose to its highest level since late November at 91.20 before entering a consolidation phase. At the moment, the DXY is up 0.4% at 92.00.

Technical levels

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