NZD/USD retained its firmer tone in the aftermath of the disappointing 194K rise in US Nonfarm Payrolls for September. In the view of economists at ANZ Bank, the kiwi is set to remain stuck in a 0.6860-0.7000 range.
Average jobs growth to be sufficient to keep the Fed tapering announcement on track
“Near-term, the established 0.6860-0.7000 range may hold much of the price action ahead of the FOMC minutes, which will be released mid-week.”
“Despite the payrolls miss, the fall in the unemployment rate and strength in average earnings growth helped to keep expectations over a Fed tapering announcement in November intact. That is well discounted and in the very short-term, DXY also looks confined to a 0.9350-0.9450 range.”
“The relatively neutral reaction in the kiwi to the OCR rate hike last week looks poised to continue for the moment.”
