NZD/USD: remains in bullish trend post nonfarm payrolls recovery

NZD/USD is currently consolidated having capped out post the nonfarm payrolls spike through the 0.7350, but was sold-off again heavily regardless a poor result.

NZD/USD is settled above the 0.7280 level and the 1hr 200 sma at 0.7273 within the bullish trend that commenced at the end of August's business i a recovery of the 0.7379 sell-off on the 26th August. 

The nonfarm payrolls was the event of last week that failed to impress, missing expectations and exposing the dollar's downside initially until a wave of demand came in scooped up the U.S. dollar again while bets still remained on a hike from the Fed at some stage in stark contrast to other Central Banks.

"The US added 151K new jobs in August, against the 180K expected, although July figure was revised to 275K from previous 255K, " noted Valeria Bednarik, chief analyst at FXStreet, adding, "The unemployment rate held steady at 4.9%, while wage growth was poor, increasing just 0.1% monthly basis, and 2.4% in a year-on-year comparison, below previous 0.3% and 2.6% respectively."

NZD/USD levels

Analysts at Westpac offered a 1-3 month outlook for NZD/USD,  "The RBNZ’s easing cycle combined with the Fed tightening in December should push the NZD lower towards 0.70 by year end, although recent BOE and BOJ easing have made the NZD even more attractive to global investment flows such that a rise to the 0.75 area is possible first. (1 Aug)." Meanwhile, 0.7200 to the downside is key support while territory back on the 0.73 handle exposes recent aforementioned highs and 0.7380 resistance.