US Payrolls In Focus
The latest set of US labour reports is due today and, on the back of the hawkish June FOMC meeting, the release is attracting even more attention than usual. The market is looking for a 700k reading today, on the back of the prior month’s 559k reading. Along with this, the market is looking for the unemployment rate to fall back from 5.8% to 5.6% along with average hourly earnings ticking down to 0.4% from 0.5% prior.
With the USD back in favour, the key thing today is that the market isn’t left disappointed. USD bulls won’t need to see a bumper release to keep buying, just no red on the data sheet. There has been quite a lot of volatility in NFP readings this year, which raises risks. However, given the broader reopening underway over June, the consensus feels likely to be met, which should keep the current USD rally ongoing into next week.
Where to Trade the NFP?
With NZDUSD not down as far as the Aussie, but with the retail community growing its long position now, there is room for the pair to push lower. A strong release today should weigh sharply on NZD. The pair is currently sitting just above the .6933 support. With MACD and RSI both bearish, a break below there will open the way for a move down to the .6791 level next.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.