Key Highlights
- The New Zealand Dollar after trading towards 0.7550 against the US Dollar started a downside correction.
- The NZD/USD pair is now approaching a crucial bullish trend line support near 0.7400 on the 4-hours chart.
- Today in New Zealand, the Employment Change for Q2 2017 released by the Statistics New Zealand posted a decline of 0.2%.
- The Unemployment Rate declined from 4.9% to 4.8% in Q2 2017.
NZDUSD Technical Analysis
The New Zealand Dollar after an impressive ride towards 0.7550-60 against the US Dollar found offers. The NZD/USD pair started a correction and now approaching a major support near 0.7400.
The pair traded below the 23.6% Fib retracement level of the last wave from the 0.7201 low to 0.7558 high recently. It has opened the doors for further losses towards 0.7420-00.
At the moment, the pair is attempting a break below a connecting bullish trend line at 0.7435 on the 4-hours chart. On the downside, there is a crucial bullish trend line with support near 0.7400.
The 100 simple moving average (H4) is also at 0.7385. Lastly, the 50% Fib retracement level of the last wave from the 0.7201 low to 0.7558 high is at 0.7379. Overall, the 0.7400-0.7380 is a major support area and it won’t be easy for sellers to break it. Therefore, there are high chances of NZD/USD resuming its uptrend from the current or 0.7400-0.7380 levels.
New Zealand Employment Change
Today in New Zealand, the Employment Change for Q2 2017 was released by the Statistics New Zealand. The market was looking for a change of +0.7% compared with the last +1.2%.
However, the actual result was on the lower side, as the Employment Change came in at -0.2% in Q2 2017. The last reading was revised down from +1.2% to +1.1%. On the other hand, the Unemployment Rate posted a decline from 4.9% to 4.8% in Q2 2017.
Commenting on the figures, the labor market and households’ senior manager, Diane Ramsay, stated:
In the June 2017 quarter, 3,000 fewer people were unemployed. The unemployment rate for women fell to 4.9 percent, with 10,000 fewer women unemployed – the lowest it’s been since March 2009." In contrast, the male unemployment rate rose to 4.7 percent (7,000 more men unemployed).
Overall, the figures were mixed and weighed on the NZD/USD pair. There can be more dips towards 0.7400, but the stated level might act as a strong support in the near term.
US ADP Employment Change
Today, the US will see the release of the Employment Change for July 2017 by the Automatic Data Processing, Inc. The forecast is slated for a change of 185K, more than the last 158K. If the actual change is more than 180K, the US Dollar might gain bids in the short term.
