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NZD/USD – Volatility continues for New Zealand dollar

The New Zealand dollar has posted sharp losses in the Monday session. In North American trade, NZD/USD is trading at 0.6615, down 0.74% on the day. In New Zealand, ANZ Commodity Prices slowed to 0.0% in May. In the U.S., unemployment claims rose to 218 thousand, above the estimate of 215 thousand. On Friday, the U.S. releases nonfarm payrolls and wage growth.

The New Zealand dollar enjoyed a banner week, climbing 1.97% last week. This was its strongest weekly gain since mid-November. The kiwi took advantage of a weak U.S. dollar, as investors stayed away after the Federal Reserve hinted that a rate cut could be in the works later this year. The Fed has sounded neutral about its next rate move, but last week’s comments from Powell and FOMC member James Bullard were clear hints that the Fed is leaning to a rate cut. The CME Group has set the odds of a quarter-point cut in July at 67%, as the likelihood a rate cut later this year is growing.

NZD/USD posted strong gains on Friday, after the U.S. posted a very soft nonfarm payrolls report. This was the second dismal release in the past four months. In May, the economy created only 75 thousand jobs, down from 263 thousand a month earlier. Wage growth was unchanged at 0.2%, shy of the estimate of 0.3%. Despite these soft job numbers, the U.S. labor market is in strong shape, and the greenback could quickly bounce back.

Stocks Rally on Positive Trade Developments [1]

NZD/USD Fundamentals

Monday (June 10)

Tuesday (June 11)

*All release times are DST

*Key events are in bold

NZD/USD for Monday, June 10, 2019

NZD/USD June 10 at 11:50 DST

Open: 0.6665 Low: 0.6665 High: 0.6612 Close: 0.6615

NZD/USD Technical

S3 S2 S1 R1 R2 R3
0.6424 0.6539 0.6607 0.6699 07055 0.7124

NZD/USD posted losses in the Asian session and the downward trend continued in European trade. In the North American session, NZD/USD edged higher but has retracted

Further levels in both directions:

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher [5]

Currency Analyst at Market Pulse [6]
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.
Kenny Fisher

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