NZD/USD APPRECIATES TO NEAR 0.5950 AHEAD OF NONFARM PAYROLLS REPORT
NZD/USD APPRECIATES TO NEAR 0.5950 AHEAD OF NONFARM PAYROLLS REPORT
The NZD/USD pair is trading around 0.5950 during the early European hours on Friday, indicating a retracement from its recent losses.
The pair is consolidating near the 0.5950 level, a key psychological support, as investors await the release of the U.S. Nonfarm Payrolls (NFP) report later today.
The appreciation of the New Zealand Dollar (NZD) is supported by a weaker U.S. Dollar (USD), which is under pressure due to easing trade tensions and positive economic data.
The U.S. Department of Labor is set to release the NFP report and the unemployment rate for April.
Analysts forecast the addition of 130,000 jobs, a decrease from March's 228,000, with the unemployment rate expected to remain steady at 3.7%.
Investors will closely monitor Average Hourly Earnings data, which measures wage growth and influences consumer spending and inflationary pressures.
The Federal Reserve has indicated that it does not plan to cut interest rates until it has greater confidence that inflation is easing sustainably to its 2% target.
The Reserve Bank of New Zealand (RBNZ) has stated that it does not plan to pivot to monetary easing until 2025 due to higher-than-expected inflation pressures in the first quarter, which supports the NZD.
