NZD/USD sub-6980 post-NFP, falling after 240-pip advance

• Traders bought USD against NZD as the US adds 223K jobs in May against 178K expected.
• NZD/USD trades below 0.6980 as USD bulls bring the pair lower on Friday.
• NZD/USD had a strong 240-pip move in the last two days and USD bulls are now retracing the recent move. 

Kiwi is dropping on Friday trading at around 0.6970 down 0.46% as the Nonfarm Payrolls report revealed that 223K jobs in May were added in the US against 178K forecast by analysts. Wages’ growth matched analysts expectations as it came at 2.8% in May y/y which is rather constructive as it is near 8-year highs. The unemployment in the US rate came slightly above expectations at 3.8% versus 3.9% forecast by analysts.

It has also been reported the US President Trump tweeted that he was "looking forward" to the employment numbers 69 minutes before the release. Some analysts argue that is why USD was going up prior to the numbers and we had a "buy the rumor sell the fact" in most major pairs. 

On the broader picture, investors have been rather bullish on the greenback since mid-April as they expect the Federal Reserve to hike at least three times in 2018. Bullish macroeconomic data from the US reinforce the idea that the Federal Reserve will actually follow through as the economy and inflation keep growing.

Coming next in the US session are the US ISM Manufacturing PMI (Purchasing Manufacture’s Index) and the ISM Price Paid in May as well as Construction Spending for April. They are scheduled at 14:00 GMT. A stronger reading can add to the USD bull case and reinforce its bull trend.

NZD/USD 15-minutes chart 

Kiwi is trading below its 200-period simple moving average on the 4-hour chart, suggesting a slight bearish bias. Support is seen at 0.6940 Monday high and at the 0.6900 handle while resistance is seen at 0.7025 current week’s high and at the 0.7100 handle.