NZD/USD fails to hold above 0.67, waits for next catalyst
- NZD/USD stays in consolidation after 2-week long uptrend.
- Trading action remains subdued on Thursday amid Independence Day holiday.
The NZD/USD pair staged a rebound following Monday's sharp drop but failed to hold above the 0.67 mark. As of writing, the pair was down 0.27% on a daily basis at 0.6685.
The lack of significant macroeconomic data releases and fresh developments surrounding the U.S.-China trade conflict, which have been impacting the antipodean's market valuation, allowed the pair to make a technical correction of the impressive rally that lasted two weeks and carried the pair from 0.65 area above 0.67.
Meanwhile, after the upsurge witnessed on Monday, the US Dollar Index lost its steam and started to move sideways as investors trying to figure out the Fed's next policy move. With the trading volume thinning out amid the Independence Holiday on Thursday, the index extended its consolidation and was last seen flat on the day at 96.75.
On Friday, the U.S. Bureau of Labor Statistics (BLS) will publish its closely-watched Nonfarm Payrolls report. Previewing the data, " Expectations stand at an increase of 160K – a tad below the long-term averages but generally a return to normal. Analysts are cautiously optimistic," wrote FXStreet analyst Yohay Elam.
"Regarding wages,– which have only marginally dipped from the high levels – estimates stand at an increase of 0.3% MoM and 3.2% YoY. This is a repeat of last month's projections. The unemployment rate is forecast to remain unchanged at low levels of 3.6%."
Technical levels to watch for