NZD/USD rebounds from day’s low at 0.6460, investors await US ADP Employment Change
- NZD/USD is bided around 0.6460 as safe-haven assets lose glory.
- A slippage in the US employment data may result in a minor impact on the DXY.
- The US ADP Employment Change is seen at 300k while the US NFP may land at 325k.
The NZD/USD pair has attracted some significant bids after hitting a low of 0.6461 in the European session. A responsive buying action near Wednesday’s low at 0.6465 is indicating that the kiwi dollar is a value bet now and longs could be initiated. At the press time, a rebound in the positive market sentiment has helped the antipodean to recover its intraday losses.
An improvement in the risk appetite of the market participants has brought a decent sell-off in the US dollar index (DXY). The DXY has slipped sharply below 102.40 amid uncertainty over the release of the US Automatic Data Processing (ADP) Employment Change, which is due in the New York session. Investors are seeing the ADP Employment Change at 300k. Also, this week’s US Nonfarm Payrolls (NFP) is expected to land at 325K.
It is worth noting that the US economy added 428k jobs to the labor force last month and an average of 551.6k jobs have been filled in the previous 12-months. May’s employment figure is expecting a sharp decline, however, one should understand that the US economy is handling full-employment levels. Therefore, the employment curve will continue to elevate but at a diminishing rate.
On the kiwi front, the upbeat Caixin Manufacturing PMI failed to strengthen the kiwi bulls. The economic data landed at 48.1, higher than the estimates of 47 and the prior print of 46. Going forward, the discussions over the monetary policy by the Reserve Bank of New Zealand will keep the antipodean active. Investors should be aware of the fact that the Official Cash Rate (OCR) stands at 2%.