• GBP/NZD initially rallied but pared gains as investors digested closely watched U.S. June employment report showed job growth came in far below expectations.
• U.S. employers added 57,000 jobs in June, well below the expected 110,000, while the unemployment rate edged down to 4.2% from 4.3%.
• Markets lowered expectations for a Federal Reserve rate hike, with the probability of a September increase falling to 53% from 67% after the report..
• Bank of England policymaker Catherine Mann said she is prepared to support a rate hike if rising inflation expectations threaten the return of inflation to the 2% target.
• Immediate resistance is located at 2.3488(23.6%fib), any close above will push the pair towards 2.3555(Higher BB).
• Immediate support is seen at 2.3290(38.2%fib) and break below could take the pair towards 2.3207(SMA20).
Recommendation: Good to buy around 2.3410 with stop loss of 2.3350 and target price of 2.3540
