The NZD/USD pair retreated for the second consecutive day ending the pair’s upside movements, where the US dollar returned to control the FX market after risk aversion took place.
TheNew Zealanddollar advanced sharply against the greenback since the beginning of 2012, where the Kiwi reached to its highest level in two months. However the strong performance for the Kiwi was temporary as the EU debt crisis still the main theme in the financial market, and its negative effect on investor’s confidence soon appeared on the surface.
TheUnited States of Americawill issue a number of economic data on Friday, starting with the non-farm payrolls at 13:30 GMT, which is expected to show that theU.S.economy has added 150 thousand jobs during the month of December compared with the previous reading of 120 thousand jobs.
Unemployment rate during the month of December is expected to increase to 8.7% from the prior of 8.6%, while the yearly average hourly earnings index is expected to advance by 2.1% from the previous reading of1.8%.
Any improvement in new jobs in the United States could drive the dollar to raise more against the Japanese yen, as it reflect the strongest recovery in employment sector and the U.S. economy as whole.
Originally posted here
