NZD/USD erases all NFP gains

NZD/USD rose sharply after the release of the US emolument report but then it reversed sharply and erased all gains.

Fail again above 0.7350

The pair peaked at 0.7359 after the NFP report, hitting the strongest level in a week amid a decline of the US dollar across the board. Then greenback started to recover ground and pushed NZD/USD to the downside.

Initially, price corrected toward 0.7300 and then it accelerated. NZD/USD tumbled to 0.7267 hitting a fresh daily low. From the highs, the pair retreated almost a hundred pips. It was trading at 0.7276, slightly below yesterday’s closing price, still 50 pips above last week closing price.

Greenback recovered ground in the market despite US data. Payrolls showed the economy added fewer jobs than expected in August (151K vs 180K) and the unemployment rate stayed unchanged at 4.9% (vs 4.8%). Then the Factory Orders report showed an expansion of 1.9%, missing estimates for a 2.0% gain.