The New Zealand Dollar (NZD) inched higher against the US Dollar (USD) on Tuesday, increasing the price of NZDUSD to more than 0.7250 following some key economic releases. The technical bias shall remain bullish because of a higher high in the ongoing downside move.
NZD/USD Technical Analysis
As of this writing, the pair is being traded around 0.7265. A support can be noted around 0.7212 an immediate horizontal support ahead of 0.7200 the psychological number and then 0.71257, another key horizontal support as demonstrated in the given below chart.
On the upside, a hurdle can be noted near 0.7377, an immediate horizontal resistance level ahead of 0.7400, the psychological level and then 0.7478, the high of the last major upside rally as demonstrated in the given above chart. The technical bias shall remain bearish as long as the 0.7500 resistance area is intact.
New Zealand Employment Data
New Zealand employment growth slowed less than economists projected in the final quarter of 2017, when a change of government caused a slump in business confidence and made firms more cautious about hiring. The jobless rate unexpectedly fell to a fresh nine-year low. Here are some key points from the report;
- Employment rose 0.5% q/q; economists expected 0.4% gain
- Jobless rate fell to 4.5%; economists’ tipped rise to 4.7%
- Jobless rate lowest since 4.4% in 4q 2008
- Participation rate dropped to 71%, matching economists’ forecast
- N.Z. dollar climbed to 73.43 U.S. cents at 11:20 a.m. in Wellington from 73.06 cents before the report
Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.