Along with the rest of the major currencies, the NZD/USD was swept higher by a retreating USD overnight. Investors spent most of the night holding their breath in anticipation of the September US non-farm payrolls figures. They turned out to be awful. Headline employment undershot expectations by a cool 55k, with a small fall in the unemployment rate doing little to sweeten the pill in traders’ eyes (see Majors). Indeed, a sizeable gouge has been taken out both the USD and the US yield curve overnight as investors push Fed tapering expectations back to March 2014.
Read the full report: FX Daily
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