NZD/USD finds resistance at 0.7200 and retreats

NZD/USD jumped after the release of the US employment report but then erased all gains. The pair peaked at 0.7199, reaching the highest level in two days and currently it trades at 0.7135/40, marginally below yesterday’s closing price. The retreated after being unable to break the 0.7200 handle took place as the US dollar recovered ground across the board. 

The kiwi despite holding above Asian session lows is headed toward the fifth decline in a row  and accumulates a weekly loss of 150 pips. It is about to post the lowest weekly close since July. The pair weakened earlier today on expectations about further easing from the Reserve Bank of New Zealand. 

In the US, according to the official employment report the economy created 156k jobs in August. Despite being below market expectations still shows a solid labor market. Jobs data, according to many analysts, supports a Federal Reserve interest rate hike before year-end. Next week, the minutes from the latest meeting will be released and it could give market participants further clues. 

Technical levels 

To the downside, support levels could be seen at 0.7120/25 (daily low), 0.7100 (psychological) and 0.7060 (Jul 28 low). On the opposite direction, resistance might lie at 0.7200 (daily high), 0.7220 (Sep 26 low) and 0.7310 (weekly high).