US Nonfarm Payrolls surged by 172K in May, crushing forecasts and bolstering USD demand as Fed rate cut bets fade.
NZD/USD slumped to 0.5791, its lowest level in two months, after US jobs data exceeded expectations. The US economy added 172K jobs in May, well above the 85K forecast, while April’s figure was revised upward to 179K. The unemployment rate held at 4.3%, and wage growth eased slightly to 3.4% year-over-year.
The stronger-than-expected report reinforced expectations that the Federal Reserve may delay rate cuts or even consider further hikes. Markets had priced in a more cautious Fed stance, but resilient labor data shifted sentiment toward a higher-for-longer rate outlook, lifting the USD.
Technical indicators suggest further downside for NZD/USD, with the pair trading below key moving averages and the RSI in oversold territory. Next week’s US CPI and New Zealand PMI data will be closely watched for further direction.