Ella 
NZD/USD rose 0.02%; NZD/USD is expected to consolidate within the 0.6130/0.6200 range ahead of Friday’s US non-farm payrolls data.
U.S. stocks closed lower, reflecting subdued market sentiment; changes in ADP employment numbers and a widening trade deficit weighed on sentiment.
Non-manufacturing purchasing managers’ indexes and third-quarter gross domestic product topped 5%, pointing to solid U.S. economic growth, even as data showed a loosening labor market.
NZD/USD was on a softer note as the Asian trading session began on Thursday, rising 0.02% with little change following Wednesday’s gains. However, before the release of US non-farm payrolls data, NZD/USD will consolidate around the 0.6130/0.6200 range. At press time, NZD/USD was trading at 0.6138.
NZD/USD was influenced by Chinese data and US jobless claims figures on Thursday.
The change in U.S. ADP employment was less than expected, indicating a slowdown in hiring momentum; at the same time, the trade deficit widened as exports fell 1% while imports increased 0.2%. Although the market is preparing for Friday’s U.S. non-farm payrolls report, which has little impact on the market, market expectations for a rate cut by the Federal Reserve (Fed) have dropped from 138 basis points to 130 basis points.
Nonetheless, the U.S. Dollar Index (DXY), an index that tracks the U.S. dollar against its peers, rose 0.19% to trade at 104.15, indicating that the greenback remains strong.
However, the Non-Manufacturing PMI and the latest week’s third-quarter GDP report were both above the 5% threshold, indicating that the U.S. economy remains solid and growth is justified, although the market The Fed is expected to keep interest rates unchanged.
