NZD/USD Finds Support Sub 0.6200 On Mixed US Payrolls Report

NZD/USD was volatile through the US payrolls release on Friday, dipping to fresh lows near 0.6180, before rebounding strongly back towards 0.6280. We settled back at 0.6240/45 by the Friday close, which is where we track in early trade today. So, on a net basis NZD finished Friday's session marginally stronger. The BBDXY finished up at 1224.1, off slightly for the session.

• On Friday, broad greenback strength was seen as the with AHE and headline NFP dynamics biased markets in that direction. However, delving deeper into the figures significantly took the shine off the report, prompting a sharp reversal.
• A weaker ISM services print further trimmed sentiment further, but the US 10yr still finished near 4.045% for the session, +5bps higher. The 2yr yield was flat.
• US equity sentiment stabilized, with marginal SPX gains (+0.18%), which may have aided Kiwi marginally.
• Current NZD/USD levels are very close to the 20-day EMA (near 0.6245).
• The local data calendar is fairly second tier this week, with house prices, house sales, commodity prices and building permits on tap.