The Reserve Bank of New Zealand made announcements regarding its monetary policy. The NZD/USD dropped.
The market awaits NFP
The level of non-farm payrolls (NFP), also known as non-farm employment change will be published on September 6, at 15:30 MT time.
NFP shows the change in the number of employed people during the previous month (without farmers). The indicator is followed by the releases of average hourly earnings and unemployment rate. All of them are important as the Fed usually take them into account while considering its future rate decisions. Moreover, the US dollar tends to get volatile after the release. Last time, non-farm payrolls came out in line with the forecast of 164 thousand. At the same time, the level of average hourly earnings beat the estimates with an increase by +0.3%, but unemployment rate disappointed with a rise to 3.7%. The USD was supported in a short term, but bulls could not hold their positions. This time we may see a different outcome.
• If NFP is higher than the forecasts, the USD will rise;
• If NFP is lower than the forecasts, the USD will fall.
The US CPI and core CPI are due at 15:30 MT time on May 12.
April seasonal patterns weren’t supposed to work, but somehow they did. Even a strong fundamental issue such as the global recession amid the coronavirus couldn’t overwhelm it. That’s why May seasonal patterns may work as well.
Stocks, oil and GBP gain on risk-on sentiment
Investors weigh reopening economies against the growing US-China tension. Which impulse will be stronger?
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