The NZD/USD pair has slipped to around 0.6115 during the early Asian session on Friday, ending a two-day winning streak. The focus for the day will be on the release of US Nonfarm Payrolls (NFP) data for June and a speech by Federal Reserve’s John Williams. The recent weaker US economic data has raised expectations of an earlier interest rate cut by the Fed, leading to a decline in the Greenback. Traders are now anticipating a 25 basis points rate cut in September, with a 66% probability according to CME FedWatch Tool.
The upcoming US employment data for June is expected to show 190K job additions, with the Unemployment Rate remaining unchanged at 4% and Average Hourly Earnings dropping to 3.9% YoY. On the Kiwi front, the Reserve Bank of New Zealand (RBNZ) is likely to keep its Official Cash Rate (OCR) steady at 5.5% in the next monetary policy meeting. However, speculations of an earlier rate cut in November could weigh on the New Zealand Dollar (NZD). The performance of the NZD is influenced by factors such as the health of the New Zealand economy, Chinese economy, dairy prices, RBNZ policy, and macroeconomic data releases. Additionally, the NZD tends to strengthen during risk-on periods and weaken during market turbulence or economic uncertainty.