NZD/USD clings to daily gains above 0.7100 ahead of US NFP data
- NZD/USD is rising for the fourth straight day on Friday.
- US Dollar Index is staying calm near 92.20 following Thursday drop.
- Investors await August Nonfarm Payrolls data from US.
The NZD/USD closed the previous three days in the positive territory and advanced its rally to the strongest level since mid-June at 0.7132 on Friday. As of writing, the pair was up 0.35% on the day at 0.7128.
Market mood remains upbeat ahead of NFP
In the absence of high-tier macroeconomic data releases, the risk-positive market environment weighed heavily on the safe-haven USD on Thursday and caused the US Dollar Index (DXY) to drop to a fresh four-week low below 92.20. Currently, the DXY is flat on the day at 92.22. Meanwhile, the S&P 500 Index remains on track to notch a new all-time high after the opening bell with the S&P Futures trading in the positive territory.
Later in the session, the US Bureau of Labor Statistics will release the August jobs report. Investors expect Nonfarm Payrolls to increase by 750,000 following July's impressive upsurge of 943,000.
Previewing this data, "August's NFP is critical due to the open question of Fed tapering," said FXStreet analyst Yohay Elam. "Real estimates are considerably low due to weak leading indicators, and the dollar has already paid the price. A "not that bad" report could trigger a substantial greenback comeback."
Technical levels to watch for