NZDUSD – New Zealand Dollar Trend Overwhelmingly Negative05 August, 2015 by Aayush Jindal in Fundamental Analysis, Market Analysis, NZDUSD, Technical Analysis
- New Zealand Dollar was seen struggling against the US Dollar recently, as the latter one gained a lot of traction during the past couple of sessions.
- There was a major release lined up today, as the New Zealand Employment Change released by the Statistics New Zealand posted a reading of 0.3% in Q2, 2015 which was lower than the forecast.
- New Zealand Unemployment Rate remained stable at 5.9% just as the market expected.
New Zealand Employment Re port
Earlier during the Asian session, the New Zealand 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 expecting a change of 0.5% in the second quarter of 2015, compared with the last reading of 0.7%. However, the outcome was on the lower side, as the New Zealand Employment Change came in at 0.3%. The New Zealand Unemployment Rate remained unchanged at 0.3%.
Commenting on the report, the labour market and household statistics manager, Diane Ramsay, stated “Even though employment grew over the quarter, population growth was greater, which resulted in a lower overall employment rate for New Zealand”. The only highlight of the report was the fact that the annual employment growth was driven by retail trade and accommodation. The participation rate, which is the percentage of the total number of people of labour-force age was also on the lower side with a reading of 69.3%.
NZDUSD Technical Analysis
The New Zealand Dollar after completing a correction around 0.6700 against the US Dollar started to move back lower. There is a monster bearish trend line formed on the hourly chart of the NZDUSD pair, which is acting as a barrier for the pair.
The most important point is the fact that the 100 hourly simple moving average is positioned with the highlighted trend line, which increases the significance of the resistance. An initial hurdle on the upside can be around the 38.2% Fib retracement level of the last drop from 0.6651 high to 0.6517 low.
On the downside, a break below the last low of 0.6517 could ignite a downside reaction, taking it towards the 0.6500 handle.