fbpx

NZD/USD on hold ahead of NZ employment data

NZD/USD on hold ahead of NZ employment data - MarketPulseMarketPulse

image

Home/FX/Market Pulse

Share 0

It’s a busy week for New Zealand indicators. We’ll get a look at employment change and the unemployment rate later on Tuesday. These indicators are released on a quarterly basis, magnifying the impact of each release. On Thursday, New Zealand releases Inflation Expectations.

NZ Employment Change Looms

Analysts are braced for a soft Employment Change for Q2, which will reflect the impact of Covid-19 on the New Zealand economy, which included a lockdown in April. Employment Change is expected to decline by 2.0%, which would be the first losing quarter in over a year. The unemployment rate, which has hovered around the 4.0% level, is projected to jump to 5.6%. If these forecasts are within expectations, we could see the New Zealand dollar lose ground.

The New Zealand dollar has followed in the footsteps of its big brother, the Australian dollar. NZD/USD has climbed 10.7% since April 1, while AUD/USD is up 12.1%. Both currencies are in the risk category, which means that in times of crisis, investors would be favoring safe-haven assets. However, the US dollar is broadly lower, and the New Zealand dollar has jumped on the bandwagon. The kiwi has also been buoyed by the fact that New Zealand has successfully kept Covid-19 under control, while the virus remains unchecked in many parts of the US.

.

NZD/USD Technical

image

NZD/USD is trading at 0.6609, down 0.04% on the day. The pair has shown little activity in the Asian and European sessions

0.6593 is under pressure in support. This is followed by support at 0.6559 0.6646 is the next resistance line. This is followed by 0.6679 USD/CAD is putting downward pressure on the 10-day MA level. A break below this line is a bearish signal

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.

Kenny Fisher

Latest posts by Kenny Fisher (see all)

Back to Top

Original author: Kenny Fisher

Copyright

© MarketPulse

USD/CAD steady as Canada Manufacturing PMI Rises
US Open – Waiting For Washington to Deliver
 

By accepting you will be accessing a service provided by a third-party external to https://chatpips.com/

 
     
 

Broker Search

Latest Spot Rate

 
Wait a minute, while we are rendering the calendar
How It Works | About | Contact | Contributors | Privacy Policy | Advertise
© 2009 - 2020 ChatPips. All Rights Reserved. Terms of Use: The content on this website is solely for educational and informational purposes and is not a substitute for official documentation of the original owners. Daily economic news is provided by third-party website. This site is not operated by, sponsored by, endorsed by, or affiliated with any parties in any way. The website owner, the authors, the publishers, and all affiliates of ChatPips.com assume no responsibility or liability for your trading and investment results. You should always check and confirm with several sources with your licensed financial advisor and tax advisor to determine the suitability of any investment before making your final decision. Your continued usage and browsing of information on this website constitute your agreement to this Terms of Use. If you do not agree, please do not proceed to use this website. Brokers Directory: The companies license information were obtained from respective local jurisdiction. All other company and/or product names are trademarks and/or registered trademarks of their respective owners.