7 Aug 2013
NZD/USD loses grip on 0.7900 after downtrodden NZ data
FXstreet.com (New York) - The NZD/USD foreign exchange rate quivered on the heels of the release of generally disappointing NZ economic data Wednesday morning.
In New Zealand, the Unemployment Change (Q2) was reported at 6.4%, missing expectations of 6.3%. Moreover, the Employment Change (Q2) grew +0.4%, matching estimates calling for +0.4%. Finally, the Labor cost Index (QoQ) yielded +0.4% in Q2, vs. projections of +0.5%
NZD/USD strategic bias
According to Jim Langlands at FX Charts, “The NZD/USD has continued its recovery from Monday’s Frontera-induced selloff and has made it back to the 50% pivot of the decline from 0.8105 to 0.7735 at 0.7917. With momentum still pointing north, if the Kiwi can break above 0.7920, we could see a run towards 0.7960 (61.8% of 0.8105/ 0.7735) and then 0.8015 (76.4%).”
NZD/USD technical levels
Technically speaking, the NZD/USD is now trading at 0.7898, incurring losses of -0.05% off it’s opening during Asian trading. Technically speaking, the pair is buoyed by supports at 0.7888 (55-day MA), ahead of 0.7861 (Aug 1 low), and 0.7825 (200-day SMA). Conversely, the pair remains constrained by resistance at 0.7904 (20-day SMA), onto 0.7914 (August 2 high), and 0.7931 (July 31 low).
In New Zealand, the Unemployment Change (Q2) was reported at 6.4%, missing expectations of 6.3%. Moreover, the Employment Change (Q2) grew +0.4%, matching estimates calling for +0.4%. Finally, the Labor cost Index (QoQ) yielded +0.4% in Q2, vs. projections of +0.5%
NZD/USD strategic bias
According to Jim Langlands at FX Charts, “The NZD/USD has continued its recovery from Monday’s Frontera-induced selloff and has made it back to the 50% pivot of the decline from 0.8105 to 0.7735 at 0.7917. With momentum still pointing north, if the Kiwi can break above 0.7920, we could see a run towards 0.7960 (61.8% of 0.8105/ 0.7735) and then 0.8015 (76.4%).”
NZD/USD technical levels
Technically speaking, the NZD/USD is now trading at 0.7898, incurring losses of -0.05% off it’s opening during Asian trading. Technically speaking, the pair is buoyed by supports at 0.7888 (55-day MA), ahead of 0.7861 (Aug 1 low), and 0.7825 (200-day SMA). Conversely, the pair remains constrained by resistance at 0.7904 (20-day SMA), onto 0.7914 (August 2 high), and 0.7931 (July 31 low).