NZD/USD bears are lurking for a test of 0.62 the figure

• NZD/USD is firm but vulnerable to fickle market sentiment.
• It is a busy week on the US s schedule for the greenback. 

NZD/USD is higher by some 0.1% in the opening hour of Tokyo and has travelled from a low of 0.6193 to a high of 0.6216 so far. 

Pessimism about the global economic outlook had boosted demand for the safe-haven U.S. dollar but equities rallied nonetheless, supporting the high beta currencies such as the kiwi. 

''While it recovered ~40bps from the night’s low, it still closed below 0.62. That was not just another record low close for 2022, but it represented a clear break of 0.6230 (first breached on Thursday), which is the 61.8% Fibo of the 2020/21 move from 0.5470 to 0.7463,'' analysts at ANZ bank argued. ''That’s quite a worrying sign from a technical perspective, especially with the USD DXY holding up despite growing fears of a US recession.''

Meanwhile, it is going to be another big week for the US dollar and the schedule on the calendar has the Federal Reserve minutes, ISM Services and Nonfarm Payrolls.

''It'll likely be another week where global events and technicals dominate, but next week’s Reserve Bank New Zealand MPR will bring the focus back onshore (hopefully),'' the analysts at ANZ Bank said.

Nonfarm Payrolls is expected to show that Employment likely continued to advance firmly in June but at a more moderate pace after three consecutive job gains of around 400k in March-May, analysts at TD Securities said.

Meanwhile, the minutes of the Federal Reserve's June meeting will also be eyed. 

''Persistent high CPI inflation and nascent signs of de-anchoring inflation expectations forced the Fed to amp the pace of rate tightening. The meeting minutes are likely to offer further colour around the Fed's more hawkish reaction function,'' the analysts at TD Securities said.