NZD/USD Erases Jobs-Led Gains, Back in the Red Below 0.69
The NZD/USD pair
reversed the early spike induced by upbeat NZ jobs data and fell
sharply lower post-China open, having surrendered 0.69 handle.
NZD/USD shrugs-off best Q1 jobs since 2004
Currently,
the NZD/USD pair trades -0.49% lower, in close proximity to the fresh
session lows of 0.6879 reached last minutes. The Kiwi gave back initial
gains and resumed its recent downslide from near ten-month tops as
extension of the rebound in the greenback across the board overshadowed
stronger than expected NZ employment change numbers released in early
trades.
New Zealand economy added 38,000 jobs in the March
quarter, the largest increase in 12 years, however, of those entering
the labor force 10,000 failed to find jobs, while the remaining 28,000
found work. While the unemployment rate rose from a revised 5.4% in the
December quarter to 5.7% last quarter.
The bird faces double
whammy as the black gold deepens correction from 5-month tops on one
hand, while renewed optimism towards the US dollar combined with falling
dairy prices also weighed down on the NZD/USD pair. Meanwhile, the US
dollar index jumps +0.20% to print fresh three-day highs at 93.22.
Now
with the NZ jobs behind, focus now shifts towards the US employment
data due later today ahead of the Chinese Caixin Services PMI due for
release tomorrow.
NZD/USD Levels to consider
To
the upside, the next resistance is located at 0.6941/43 (daily high/ 1h
20-SMA), above which it could extend gains to 0.6985/0.7000 (1h 50-SMA/
round number). To the downside immediate support might be located at
0.6822/21 (50-DMA/ daily S2) and from there to 0.6800.
