NZD/USD clings to daily gains above 0.7000 ahead of US NFP report
- NZD/USD touched its highest level in 10 days on Friday.
- US Dollar Index posts small losses below 93.00.
- Investors are waiting for US jobs report for March.
The NZD/USD pair gained 30 pips on Thursday as the greenback struggled to find demand amid falling US Treasury bond yields, risk-positive market environment. Despite the subdued market action on Friday, the pair managed to edge higher and touched its best level since March 23 at 0.7042 before going into a consolidation phase. As of writing, NZD/USD was up 0.24% on the day at 0.7030.
USD remains on the back foot ahead of NFP
The upbeat macroeconomic data releases from the US allowed risk flows to continue to dominate the financial markets on Thursday. The S&P 500 Index rose more than 1% and registered a record-high daily close at 4,019. Moreover, the benchmark 10-year US Treasury bond yield, which has been impacting the USD's market valuation lately, fell more than 4%. Consequently, the US Dollar Index (DXY) lost 0.3% and finished the day below 93.00.
Later in the session, the US Bureau of Labor Statistics will release the jobs report for March. Nonfarm Payrolls (NFP) are expected to increase by 647,000. However, it will be difficult to assess the impact of the NFP data on market sentiment due to the Easter holiday.
Previewing the NFP report, "Citi expectations are close to consensus at 600K," said Citibank analysts. "While inflation data is receiving most of the attention, we think the Federal Reserve could be on-track to taper if job growth averages 500K+."
Nonfarm Payrolls Preview: Forecast from eight major banks for March jobs report.
Technical levels to watch for
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