NZDUSD – NZ Dollar May Remain Under Bearish Pressure

NZDUSD – NZ Dollar May Remain Under Bearish Pressure

Key Highlights            

  • New Zealand dollar struggled this week against the US Dollar and may continue to trade down.
  • NZDUSD traded below the 0.6950 support area and also broke a major support trend line on the hourly chart.
  • In New Zealand, the Employment Change released by the Statistics New Zealand posted a change of 1.2% in Q1 2016, more than the forecast of 0.7%.
  • New Zealand Unemployment Rate came in at 5.7%, up from the last revised reading of 5.4% in Q1 2016.

NZDUSD Technical Analysis

The New Zealand dollar tumbled against the US Dollar recently, as most major Asian currencies were under a bearish pressure recently. Moreover, a rise in the unemployment rate in New Zealand also increased a bearish pressure on the NZ dollar.

NZDUSD

NZDUSD traded down, cleared a major support area of 0.6950 and also broke a major support trend line on the hourly chart.

The pair also settled below the 100 and 200 hourly simple moving average, which is a bearish sign and calling for more losses in the near term.

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 forecast was slated for a change of 0.7% in the Employment in Q1 2016. However, the outcome was above the expectation, as the New Zealand Employment Change posted a change of 1.2%.

Moreover, the New Zealand Unemployment Rate was on the disappointing side, as it rose from the last revised reading of 5.4% to 5.7%. Moreover, the report added that “Annual wage inflation, as measured by the labour cost index, eased to 1.5 percent, the lowest since the year to the March 2010 quarter. This compares with low annual consumer price inflation of 0.1 percent”.

US ADP Employment Change

Today in the US, the Employment Change, which is a measure of the change in the number of employed people in the US will be released by the Automatic Data Processing, Inc. The forecast is slated for a change of 196K jobs in April 2016, compared with the last change of 200K.

If the outcome exceeds the forecast, then the US Dollar may gain traction in the short term. On the other hand, a miss in the ADP Employment Change may put some bearish pressure on the greenback.



Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a decade as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.

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