NZDUSD – New Zealand Gains As Unemployment Dips in NZ02 November, 2016 by Aayush Jindal in Fundamental Analysis, Market Analysis, NZDUSD, Technical Analysis
NZDUSD – New Zealand Gains As Unemployment Dips in NZ
- The New Zealand dollar gained heavily during the past couple of hours and traded above the 0.7180 resistance.
- There is a bullish trend line formed on the 4-hours chart of NZDUSD, which can be seen as a buy zone on the downside.
- The New Zealand Employment Change released by the Statistics New Zealand posted a chance of 1.4% in Q3 2016.
- The Unemployment Rate posted a decline from the last revised rate of 5% to 4.9% in Q3 2016.
NZDUSD Technical Analysis
The New Zealand dollar recently managed to gain traction against the US Dollar to trade above a crucial resistance area of 0.7180. The NZDUSD pair may continue to gain pace and could challenge 0.7265 going forward.
When we look at the 4-hours chart of NZDUSD, there is a clear break above 0.7180 visible along with the 61.8% Fib retracement level of the last decline from the 0.7265 high to 0.7108 low.
So, there is a chance that the pair may continue to march higher, and could even test the full swing high of 0.7265. On the downside, there is a bullish trend line formed on the 4-hours chart, which may act as a support if the pair dips or corrects lower.
New Zealand Employment Change
Today in New Zealand, the Employment Change, which is a measure of the change in the number of employed people in New Zealand was released by the Statistics New Zealand.
The market was not expecting any major improvement in the employment data. However, the result was a bit better, as the Employment Change posted a chance of 1.4% in Q3 2016. The most important point was the decline in the Unemployment Rate. It posted a decrease from the last revised rate of 5% to 4.9% in Q3 2016.
Commenting on the report, the labour and income statistics manager, Mark Gordon, stated that the “number of people employed in New Zealand was up 35,000, or 1.4 percent, in the September 2016 quarter. This strong growth in employment, coupled with fewer unemployed people, pushed the unemployment rate below 5.0 percent for the first time in nearly eight years”.
Overall, the report lifted the market sentiment in favor of the NZD, and it may continue to trade higher in the short term.