The dollar remained broadly higher against a basket of other major currencies on Friday, after data showed that the U.S. economy added far more jobs than expected last month, sparking optimism over the strength of the job market.
In a report, the U.S. Department of Labor said the economy added 280,000 jobs in May, exceeding expectations for an increase of 225,000. However, April’s figure was revised to a 221,000 rise from a previously estimated gain of 223,000.
The report also showed that the U.S. unemployment rate ticked up to 5.5% last month from 5.4% in April. Analysts had expected the rate to remain unchanged.
U.S. average hourly earnings rose 0.3% in May, beating expectations for a 0.2% gain, after an uptick of 0.1% the previous month.
Meanwhile the New Zealand economy continued to grow weak amidst interest rate cut speculations in the recent coming RBNZ meetings.
The pair’s decline from 0.7743 continued and extended to 0.7022 last week. Initial bias remains on the downside as 21 and 55 EMA are still showing strong bearish momentum is still in play. Am expecting further decline to 0.6806 (50.0% Fibo retracement from 0.4892 to 0.8845).
Later this week investors would be taking a close look at the NZD Interest Rate/Statement/Press Conference, USD Retail/Core Retail Sales and Consumer Sentiment.