NZD/USD plummets to fresh multi-month lows below 0.71 despite weak NFP data

The NZD/USD fell sharply to its lowest level since early June at 0.7063 after the employment data from the U.S. boosted the greenback. As of writing, the pair was trading at 0.7072, losing 0.6% on the day.

Although the total nonfarm employment decreased by 33K in September, the fact that the average hourly earnings rose 0.5% on a monthly basis in September, beating the market estimate of 0.3%, lifted the US Dollar Index to a fresh 10-week high at 94.09. Moreover, the unemployment rate eased to 4.2%. In its report, the U.S. Bureau of Labor Statistics noted, "a sharp employment decline in food services and drinking places and below-trend growth in some other industries likely reflected the impact of Hurricanes Irma and Harvey."

• US: Total nonfarm payroll employment decreased by 33,000 in September

Later in the session, FOMC members Rosengren, Dudley, Kaplan and Bullard will be delivering their speeches. Investors will be looking for clues regarding the impact of today's data on a possible rate hike in December.

Technical levels to consider

In case the DXY continues to push higher in the remainder of the day, the pair could extend its fall to the critical 0.7000 (psychological level) mark. Below that level, technical supports align at 0.6920 (May 22 low) and 0.6890 (May 18 low). On the upside, resistances could be seen at 0.7115 (daily high), 0.7155 (200-DMA) and 0.7240 (50-DMA).