NZD/USD hits 3-month highs after NFP

The US dollar tumbled in the market following the released of the NFP report that showed lower-than-expected number. NZD/USD gained momentum and jumped from 0.7090 to 0.7142, reaching the highest level since March 2. 

The pair is trading slightly below the highs, consolidating above the relevant technical level of 0.7090/0.7100. 

Jobs numbers pushed the greenback sharply to the downside. Still, expectations for a June rate hike from the Fed remain high, above 90% according to the CME FedWatch Tool. The kiwi, on the other side, remains resilient, with some support from the AUD/NZD decline. 

Soft US jobs report not enough to stop a June Fed hike - ING

Levels to watch 

The pair is holding above the 0.7100 with the path clear for a test of the next strong resistance that is the 0.7150 zone; above that area the next levels to watch are 0.7200 and 0.7230. 

On the flip side, a decline below 0.7050 could remove the short—term bullish momentum. Below the next key support might be located at 0.6970 (May 3 high / November low).