NZD/USD approaches weekly highs after NFP

A weak US dollar pushed NZD/USD above 0.7100. The pair moved toward weekly highs following the release of the US employment report. 

Non-farm Payrolls increased by 178K during November, slightly above expectations. The unemployment rate dropped to 4.6%, the lowest since 2007, from October’s 4.9%. On the negative side, Average Hourly Earnings dropped 0.1% inter-month.

Greenback weakened in the market after the release but volatility remained limited across financial markets amid a recovery in US bonds. 

NZD/USD consolidates weekly gains 

The pair peaked during the American session at 0.7140, the highest since Wednesday and it was trading at 0.7130/35, up 0.65% for the day and 90 pips above the level it had a week ago, about to post the second weekly gain in a row.

To the upside, the next resistance area might be seen at 0.7170 (weekly high) followed by 0.7200 (psychological) and 0.7225/30  (Nov 11 high). On the opposite direction, support could be located at 0.7105 (Dec 1 high), 0.7070 (Nov 30 low) and 0.7040 (Dec 1 low).