NZD/USD Gains For Third Session, Focus On US Employment Data Later

The NZD/USD finished the day up 0.23% at 0.6117 and marks the third straight day of gains for the currency. Focus overnight has been on the UK election, where it all points to a record majority for the Labour party amid a collapse in support for the governing conservatives.

• The BBDXY fell 0.26% overnight carry over weakness lower-than-expected private sector job growth and a significant drop in the ISM Services PMI, with market participants now anticipating a potential rate cut in September while focusing on the upcoming June Nonfarm Payrolls report due out later today.
• The NZD/USD finished the session just off session highs of 0.6123, and did fail to test the highs made during the US ISM release on Wednesday. The pair sits back above all major EMAs, while the MACD indictor is showing decreasing negative bars.
• Immediate support is seen at 0.6100 (post US ISM lows/July 3) a break would open up a move to 0.6082 (200-day EMA). Resistance is at 0.6130 (Jul 3 high), a break here would open a move to 0.6148 (June 20 high) while above here the June highs at 0.6222 become the target.
• The NZ-US 2yr swap is 0.5bps higher at 26.5bps.
• Expiries: 0.6250 (NZD436.8m) July 5th while upcoming notable strikes: 0.6135 (NZD494.5m July 8), 0.6300 (NZD448m July 9), 0.6175 (NZD360.5m July 10)
• Today, the calendar is empty, focus will turn to the RBNZ rate decision on Wednesday.