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NZD/USD upside capped below 50 DMA

FXStreet (Guatemala) - NZD/USD is currently trading at 0.6422 with a high of 0.6456 and a low of 0.6383.

NZD/USD has settled back after posting the recent highs post the poor Nonfarm Payrolls release. The data was a big surprise to markets expecting an inline result in the region of 200k.

Nonfarm payrolls rose by 142k. With the downward revision in August to 136k, it is the second consecutive month below 150k, which has not been experienced since May-June 2012," as noted by analysts at BBH. "The market's response has been sharp. The dollar has been sold off across the board and US yields have fallen dramatically. "

NZD/USD levels

Technically, NZD/USD upside remains limited though, and on further supply, the price may find support at the 50 and 20 SMA's on the hourly protecting the 0.64 handle ahead of the 20 DMA on the daily sticks at 0.6341. A break of 0.6450 ad the 50 DMA is required to alleviate immediate pressures to the downside.

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US labor market data for September was disappointing. Non-farm payrolls rose less than expected with an additional 142,000 new jobs. This is 59,000 below the 201,000 expected by the market. Gains from the previous month were revised down by another 37,000. The unemployment rate managed to stay at 5.1%, but work-week hours fell and wages did not rise.
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