NZD/USD consolidates daily losses near 0.6630 as focus shifts to US jobs report
- NZD/USD is trading in the red pressured by safe-haven flows.
- US Dollar Index is posting modest daily gains, stays below 94.00.
- Nonfarm Payrolls in the US is expected to increase by 850K in September.
After closing the first four days of the week in the positive territory, the NZD/USD pair turned south on Friday as risk aversion made it difficult for the kiwi to find demand. As of writing, the pair, which slumped to a daily low of 0.6616, was consolidating its losses near 0.6630, down 0.17% on the day.
DXY rebounds ahead of key US data
Following the news of US President Donald Trump contracting the coronavirus, safe-haven flows took control of financial markets on Friday. At the moment, the S&P 500 futures are down 1.35% on the day, suggesting that Wall Street is likely to open deep in the negative territory.
Meanwhile, the USD took advantage of the sour market mood and started to gather strength against its rivals, ramping up the bearish pressure on NZD/USD.
Ahead of the US Bureau of Labor Statistics' highly-anticipated Nonfarm Payrolls (NFP) report, the US Dollar Index (DXY) is up 0.2% on the day at 93.90. Analysts' expect the NFP to rise by 850K in September and see the Unemployment Rate edging lower to 8.2% from 8.4%.
Although a stronger-than-expected jobs report could help the sentiment improve in the American session, investors are likely to focus on developments surrounding President Trump's health and what it means for the coronavirus relief bill negotiations.
Technical levels to watch for