Nzdusd sees slight increase amid rising us unemployment claims

NZDUSD Analysis

Performance after Thursday
Period	Pct	Chg	Momentum
Thursday	0.1%	5.7 Pips
Week to-date	1.55%	86.7 Pips
January	0.61%	34.3 Pips

Upcoming key events (London Time)

No major events for the day.

What happened lately

In the United States, the latest data from the Department of Labor indicates an increase in Initial Unemployment Insurance Claims for the week ending on January 18, rising to 223,000 from the prior week’s figure of 217,000. This uptick suggests a modest increase in unemployment claims, which could imply a slight softening in the labor market. Evaluating the broader context, such a change might reflect normal fluctuations rather than a significant shift, although continually rising claims could be troubling if the trend persists.

The NZDUSD currency pair increased slightly by 0.1% to 0.56756. The recent unemployment claim data from the U.S. might weaken the USD slightly, as increased unemployment claims can signal potential concerns about the economic recovery trajectory, making it less attractive for investors. Conversely, the New Zealand dollar could be gaining marginally due to this perception or potentially due to other factors relevant to the NZD that are not captured within this snapshot. Given the lack of significant scheduled economic events, market movements might be subdued unless unexpected news arises. In this environment, a cautious approach is often observed amongst traders who might anticipate volatility in response to economic indicators that reflect on central bank policies or economic health. Therefore, the NZDUSD’s small increase could reflect a neutral stance among investors pending further information.

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What can we expect from NZDUSD today?

NZDUSD on Thursday rose 0.1% to 0.56756. Price is above 9-Day EMA while Stochastic is rising.

Updated daily direction for NZDUSD looks bullish as the pair ended higher after Thursday trading session.

Looking ahead for the day, immediate upside resistance level is R1 at 0.5692 with break above could target R2 at 0.57083 or figure level area. While towards the downside, we are looking at daily low of 0.56461 as an important support. Break below this level could weaken the current bullish momentum. A break above 0.56854 may suggest continuation after recent positive movement.

For the week to-date, take note that NZDUSD is mixed as compared to the prior week.

Key levels to watch out:

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