- Improved risk sentiment weighs on the US dollar.
- US yields rise after a better-than-expected jobs report.
- NZD/USD recovers from 2-year lows and heads for a weekly gain.
The NZD/USD It is trading above 0.6200, at the highest level in three days. The pair rose more than 70 pips from the daily low buoyed by a weaker US dollar overall.
Risk appetite, NZD rises
Improved risk sentiment caused the US dollar to pull back. Stocks on Wall Street rise after a negative opening. The Dow Jones rises 0.37% and the Nasdaq 0.43%. US yields are at weekly highs, with the 10-year yield at 3.07%.
Turning to economic data released on Friday, the June US jobs report showed the economy added 372,000 payrolls versus expectations of 268,000. The unemployment rate remained at 3.6%, in line with the market consensus.
NZD/USD bottomed at 0.6130 after the NFP and then bounced over 70 pips. It reached a new daily high at 0.6206. At the time of writing, it is holding near the highs, with positive momentum.
The 4-hour chart shows the pair breaking above a short-term downtrend line and resistance at 0.6190. If it holds above, more gains seem likely. The next resistance is located at 0.6220, followed by 0.6250. A retracement below 0.6190 would expose 0.6130 again.
-637928902299599288.png)
Technical levels
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
