NZD/USD holds positive ground above 0.5920 ahead of the US Jobless Claims

• NZD/USD holds positive ground around 0.5935 amid the USD weakness.
• US private payrolls for September rose by 89,000 vs.180,000 prior.
• The Reserve Bank of New Zealand (RBNZ) maintained its monetary policy at its October meeting.
• Traders will monitor the weekly US Jobless Claims on Thursday.

The NZD/USD pair attracts some buyers near 0.5935 during the early European session on Thursday. The downbeat US labor data exert some selling pressure on the US Dollar (USD) and lend support to the pair. Meanwhile, the US Dollar Index (DXY) drops to 106.65 after retracing from the 11-month high of 107.34.

According to Automatic Data Processing (ADP) on Thursday, US private payrolls for September rose by 89,000 from 180,000 in the previous reading. This figure came in below the estimation of 153,000 and posted the lowest level since January 2021. Additionally, the US ISM Services PMI fell to 53.6 in September from the previous reading of 54.5, matching the market estimation.

However, market players will take cues from additional labor market data, including the US Nonfarm Payrolls (NFP) on Friday. The US economy is expected to create 170,000 jobs in September. The weaker-than-expected Nonfarm Payrolls data could trigger some sell-off in the Greenback and act as a tailwind for the NZD/USD pair.

On Tuesday, Cleveland Federal Reserve President Loretta Mester stated that she is likely to favor an interest rate hike at the next meeting if the current economic situation holds while mentioning that the Fed is likely at or near peak for interest rate target. Meanwhile, Atlanta Fed President Raphael Bostic said he will be patient and there is an urgency for us to do anything more.

On the Kiwi front, the Reserve Bank of New Zealand (RBNZ) decided to hold the Official Cash Rate (OCR) unchanged at 5.5% at its October meeting on Wednesday, as widely expected. The committee agreed that interest rates may need to remain at a restrictive level for a more sustained period of time, according to the RBNZ statement.

About the data, the National Bank ANZ reported on Thursday that New Zealand’s ANZ Commodity Price for September came in at 1.3% versus a 2.9% drop prior. On Tuesday, the nation’s NZIER Business Confidence for the third quarter (Q3) fell to -52% QoQ versus -63% in the previous reading.

Looking ahead, market participants will keep an eye on the US weekly Jobless Claims due on Thursday. The attention will shift to the highly-anticipated US Nonfarm Payrolls on Friday. This event could trigger the volatility in the market. Traders will take cues from the figure and find the trading opportunities around the NZD/USD pair.