7 Nov 2013
NZD/USD erases its losses on dismal Australian labor data
FXstreet.com (Athens) – The NZD/USD managed to pare almost of all its overnight losses following the dismal Australian jobs data.
The NZD/USD was dragged down immensely due to the very soft Australian data released. Briefly, the Australian labor data revealed a 1.100 net increase in payrolls for the month which was much worse than the 10,000 increase expected. What’s more, the unemployement rate remained unchanged at 5.7%, close to the four-year high set in July (5.8%). Last but not least, the big decline in the labor data was due to the 28k full time jobs lost. The dismal data took out the steam of the kiwi, as it is widely known that the New Zealand dollar tracks its antipodean cousin trend shift at a very large extent, thus, the NZD/USD came down in sympathy with the Aussie. However, the past couple of hours the cross managed to pare all of its immense losses (roughly 25 pips), hovering again on its opening levels around 0.8383 area.
Technical Aspects on the NZD/USD
Technically speaking, on the upper level the cross might first have to overcome the barrier as of 0.8416 (17th October low), followed by the 0.8436 (22th October low). Downwards, the 0.8350 area is considered to be a crucial support. Traders should also bear in mind that after RBA’s statement on “concerns on overvalued Aussie”, alongside with today’s sharp fall of the Aussie due to the dismal Australian data, the kiwi has strengthened further. Thus, RBNZ might not be that excited by that fact, as already tries to mitigate the adverse effects of the overvalued kiwi (the weighed value of kiwi index has been at its highest level in 30-year time).
The NZD/USD was dragged down immensely due to the very soft Australian data released. Briefly, the Australian labor data revealed a 1.100 net increase in payrolls for the month which was much worse than the 10,000 increase expected. What’s more, the unemployement rate remained unchanged at 5.7%, close to the four-year high set in July (5.8%). Last but not least, the big decline in the labor data was due to the 28k full time jobs lost. The dismal data took out the steam of the kiwi, as it is widely known that the New Zealand dollar tracks its antipodean cousin trend shift at a very large extent, thus, the NZD/USD came down in sympathy with the Aussie. However, the past couple of hours the cross managed to pare all of its immense losses (roughly 25 pips), hovering again on its opening levels around 0.8383 area.
Technical Aspects on the NZD/USD
Technically speaking, on the upper level the cross might first have to overcome the barrier as of 0.8416 (17th October low), followed by the 0.8436 (22th October low). Downwards, the 0.8350 area is considered to be a crucial support. Traders should also bear in mind that after RBA’s statement on “concerns on overvalued Aussie”, alongside with today’s sharp fall of the Aussie due to the dismal Australian data, the kiwi has strengthened further. Thus, RBNZ might not be that excited by that fact, as already tries to mitigate the adverse effects of the overvalued kiwi (the weighed value of kiwi index has been at its highest level in 30-year time).