For the second consecutive trading session, the NZD/USD currency pair has fallen from its highest point since June 2022. During the European session, the pair trades just above the middle of the 0.64 range.
On Friday, the US dollar improved on its overnight rise from a nine-month low and keeps going up, which affected the NZD/USD pair. The slight rise in the USD may have been caused by traders rearranging their trades before good US monthly jobs data early in the North American session.
US Weekly Initial Jobless Claims went down more than expected, which indicates a good US NFP report. Investors also rethought the Fed’s plan to raise interest rates because of the good news, which led to some short-covering in the Greenback.
Before important US economic data, the stock market is often weaker. This helps the safe-haven dollar and hurts the NZD/USD, which doesn’t like to take risks. But as US Treasury bond rates go down, USD bulls can’t bet as much, and the NZD/USD pair can’t go down as much, at least for now.
From a technical point of view, multiple failures to break above 0.6500 could mean that bulls are tired.
Conclusion
To show that the NZD/USD pair has hit bottom and get ready for a big corrective drop, there will need to be strong selling after the bottom.