NZD/USD reverses from 0.7300, drops to 0.7260

The kiwi jumped to 0.7308, the highest level since Monday after the release of the US employment report. The greenback reversed sharply and pushed NZD/USD back to the price it had before the report. 

The pair bottomed during the American session at 0.7260 and currently trades at 0.7270/75, at the same level it closed yesterday. 

The NFP report had a mixed impact. Non-farm payrolls increased by 222K (vs 179K expected), the best month since February. But average hourly earnings rose 0.2% (below 0.3% expected) and previous month data was revised lower. The unemployment rate rose from a 16-year low (4.3%) to 4.4%, due to an increase of the Labor Participation rate.

 US: Total nonfarm payroll employment increased by 222,000 in June

Levels to watch 

The pair is consolidating weekly losses but continues to trade sideways with a bearish bias. It is correcting lower after reaching 4-month highs at 0.7345. The decline is being modest with price unable to move significantly away from the 0.7270/80 area. 

To the downside support levels might be located at 0.7260 (Jul 7 low), 0.7240 (Jul low) and 0.7225 (Jun 13 high). On the flip side, resistance is seen at 0.7290/95 (Jul 6 high), 0.7310 (Jul 7 high) and 0.7345 (Jun 30 / Jul 1 high).