- Greenback drops sharply after NFP and ISM service sector.
- US yield falls to multi-day lows, commodities rebound.
- NZD/USD reverses from monthly lows, and trims weekly losses.
The NZD/USD has risen a hundred pips from the daily low and it is trading at 0.6290, with a solid bullish tone supported by a broad-based USD decline.
The greenback turned to the downside after the release of the Nonfarm Payrolls report that came in above expectations. After a brief recovery, it resumed the downside following the ISM Service Sector report for December that showed a larger than expected slide.
Following the numbers, US yields tumbled with the 10-year falling from 3.75% to 3.61%, the lowest level since December 20. The DXY reversed sharply from one-month highs above 105.50 to under 104.50, turning negative for the day, but still positive for the week.
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The NZD/USD is looking at the 0.6300 zone and toward the next resistance that stands at 0.6310 (Jan 5 high). Above attention would turn to 0.6355/60, a critical area that capped the upside several times. A consolidation above 0.6360 should open the doors to more gains. On the flip side, 0.6250 is the immediate support, followed by 0.6215.