In the Asian session on Monday, the NZD/USD currency pair experienced a second consecutive decline, hovering around 0.6120. Robust US employment figures drive an uptick in bond yields, bolstering the US dollar and applying pressure on the kiwi pair.
US Nonfarm Payrolls for November exceeded expectations at 199,000, contributing to a strengthened US dollar. Stable Average Hourly Earnings and a reduced unemployment rate further support the dollar’s surge. The Michigan Consumer Sentiment Index also marked a significant rise.
Amid speculation on the Fed’s monetary policy, the US Dollar Index (DXY) aims to maintain its position above 104.00. Focus turns to the US Consumer Price Index (CPI) on Tuesday, while anticipation surrounds the upcoming Fed meeting projecting interest rates to stay at 5.5%.
Turning to the Kiwi’s economic calendar, Thursday’s GDP data for Q3 is crucial, with a projected growth of 0.2%. Attention remains on the potential impact of these events on the NZD/USD pair.
Trade Idea:
Consider cautious short positions on NZD/USD amid the greenback strength; monitor US CPI and Fed meeting for potential market direction.