NZD/USD oscillates in a narrow range below the 0.6080 mark ahead of US NFP

• NZD/USD consolidates in the 0.6075-0.6090 range after posting two days of losses.
• Mixed US data limits the US Dollar's movement ahead of the US Nonfarm Payrolls (NFP).
• Investors will closely watch the US NFP, Average Hourly Earnings due on Friday.

The NZD/USD pair oscillates in a narrow range below the 0.6080 mark in the early Asian session on Friday. Market participants prefer to wait on the sidelines ahead of the key events later in the day. The figure is expected to trigger volatility in the FX markets. Meanwhile, the US Dollar Index (DXY), a measure of the value of USD against six other major currencies, snaps a five-day winning streak and currently trades near 102.48. 

Data released by the US Department of Labor on Thursday revealed that Initial Jobless Claims increased to 227,000 for the week ended July 29, matching expectations. The ISM Service PMI for July dropped to 52.7 from 53.9 prior and was worse than expected at 53. Lastly, Unit Labor Costs from Q2 came in at 1.6%, lower than the 2.6% expected.

Investors will take more cues from the US wage inflation and unemployment figures on Friday. The stronger data could convince the Federal Reserve (Fed) to hike additional rates this year, which benefits the US Dollar and acts as a headwind for the NZD/USD pair. 

On the Kiwi front, Statistics New Zealand reported on Wednesday that the New Zealand Unemployment Rate for Q2 came in at 3.6%, above the consensus of 3.5% and 3.4% prior. Employment Change QoQ rose 1.0%, better than expected at 0.5% and 0.8% previously. The mixed New Zealand economic data undermines the NZD/USD risk-barometer pair.

Looking ahead, market participants will closely watch the US Nonfarm Payrolls, the Unemployment Rate and Average Hourly Earnings later in the American session. The US economy is expected to create 200,000 jobs in July, below the 209,000 in June, while the Unemployment Rate is expected to remain at 3.6%. These events could significantly impact the US Dollar's dynamic and give the NZD/USD pair a clear direction.