• US Nonfarm Payrolls increased by 172K in May, beating expectations of 85K.
• The Unemployment Rate held at 4.3%, while wage growth eased to 3.4%.
• The New Zealand Dollar hit its lowest level since April 8.

NZD/USD falls sharply towards the 0.5790 region on Friday as the US Dollar (USD) strengthened following a stronger-than-expected Nonfarm Payrolls (NFP) report, while the New Zealand Dollar (NZD) struggled to attract buyers amid a cautious market mood. At the time of writing, the pair trades at 0.5791, its lowest level in the last two months.

The Bureau of Labor Statistics reported that the United States (US) economy added 172K jobs in May, significantly above market expectations of 85K and following an upwardly revised gain of 179K in April.

Meanwhile, the Unemployment Rate held steady at 4.3%, while annual wage growth eased to 3.4% from 3.6%. The data reinforced the view that the labor market remains resilient and puts pressure on the Federal Reserve (Fed) to keep interest rates higher-for-longer or even raise them, supporting the Greenback.

Next week, markets will closely watch the US Consumer Price Index (CPI) report and labor data, while New Zealand will release the Business NZ Performance of Manufacturing Index (PMI).

Short-term technical analysis:

On the 4-hour chart, NZD/USD trades at 0.5793, extending its downside bias as price remains below both the 20-period Simple Moving Average (SMA) at 0.5871 and the 100-period SMA at 0.5882. This configuration reinforces a bearish near-term tone, even as the Relative Strength Index (RSI) slips into oversold territory near 23, hinting that while sellers remain in control, the downside could become more vulnerable to corrective rebounds.

On the topside, initial resistance is located at 0.5802, followed by a tighter cap at 0.5813 and then 0.5843, where prior horizontal levels may attract renewed supply. Above these, the 20-period SMA at 0.5871 and the 100-period SMA at 0.5882 add to a broader resistance band that would need to be reclaimed to ease bearish pressure. On the downside, immediate support emerges at 0.5790; a decisive break lower would expose fresh lows and keep the bears firmly in charge.

(The technical analysis of this story was written with the help of an AI tool.)