US labor data beats forecasts, lifting USD and pressuring risk-sensitive currencies like the New Zealand Dollar.
NZD/USD fell to near 0.5770 on Thursday as the US Dollar strengthened following stronger-than-expected US labor market data. Initial Jobless Claims dropped to 187K for the week ending July 18, undershooting the 212K forecast and the prior revised 209K print by 25K. The data suggests sustained labor market resilience, bolstering expectations for prolonged Federal Reserve policy restraint.
The decline in jobless claims contrasts with elevated New Zealand inflation, which had supported RBNZ tightening expectations. However, broader USD strength and geopolitical uncertainty weighed on the NZD, a risk-sensitive currency. Technical indicators show the pair trading below key moving averages, with oversold RSI conditions potentially limiting further downside.
Immediate resistance for NZD/USD lies near 0.5780-0.5789, while support hovers at the 100-period SMA around 0.5770.