On Friday, the New Zealand dollar fell in volatile trading after data showed that the world's largest economy, the US, created many more jobs than expected, raising the chances of a bigger interest rate hike by the Federal Reserve at the March policy meeting.
On Friday, the NZD/USD pair closed the US session at 0.6614, down 0.0050, or -0.75%.
Data showed that last month the number of jobs in the non-agricultural sector of the United States increased by 467,000 people. For December, the data was revised upward. To publish preliminary data of 510,000 new jobs instead of the previously announced 199,000.
Economists polled by Reuters predicted 150,000 jobs would be added in January. Estimates ranged from a 400,000 reduction to an increase of 385,000 jobs.
Now, attention is shifting to the outgoing data on the Basic Consumer Price Index CPI in the United States, which will be published on Thursday, February 10, at 13.30 London time. And also do not forget that tomorrow, Tuesday, February 8 at 02:15 London time, the speech of the head of the Reserve Bank of New Zealand Adrian Orr is scheduled. This can add volatility to the NZD/USD bar.
According to the daily oscillation chart, the main trend is down.
Based on Friday's strong dollar data, it is possible to give preference to short positions on the NZD/USD pair. While the price is in the range of 0.6684 on the upper border and 0.6529 on the lower.
If the price goes beyond the upper limit of the range, short trades should be closed: