Daily Forex Market Preview, 05/02/2018
The U.S. dollar managed to close on Friday with some gains, led by a better than expected payrolls report. Data showed that as the U.S. unemployment rate held steady at 4.1% for the fourth consecutive month, wage growth was better than expected. Previous month’s revisions to wage growth put the annual gain to 2.9%.
Looking ahead, the economic calendar today will see the release of the UK’s services PMI data. Forecast shows that activity in the sector remained stable, easing to 54.1 for January which is down from 54.2 in December. Data from the U.S. will see the release of the ISM’s non-manufacturing PMI data.
The median estimates point to a modest increase to 56.5 for January, up from December’s 55.9. Markit’s services PMI data will also be released for the U.S. Later in the day, ECB President Mario Draghi is expected to speak.
NZDUSD intra-day analysis
NZDUSD (0.7302): The New Zealand dollar declined on Friday as price closed below the 0.7333 level of support. However, with the 4-hour Stochastics showing oversold conditions, we could expect price to consolidate around this level. Ahead of a busy week for the NZDUSD which will see the release of the quarterly employment reports and the RBNZ meeting, the bias remains to the downside. NZDUSD could be at risk of posting a correction to the 0.7160 level of support in the short term.