NZDUSD Analysis
| Performance after Tuesday | |||||
| Period | Pct | Chg | Momentum | ||
| Tuesday | 0.48% | 26.7 Pips |  |
||
| Week to-date | -0.83% | -47.1 Pips |  |
||
| February | 0.16% | 8.8 Pips |  |
||
Upcoming key events (London Time)
No major events for the day.
What happened lately
New Zealand’s labor market demonstrated a mixed performance in the fourth quarter. The labor force participation rate dipped slightly to 71% from 71.2% in the third quarter. Meanwhile, the unemployment rate edged higher, climbing to 5.1% from 4.8%. Nonetheless, there was some positive movement in employment change, which improved to -0.1% from -0.5%. The Labour Cost Index remained stable at 0.6%, indicating no significant shifts in wages. Additionally, the building consents for new dwellings experienced a decline of 5.6% in December, reversing gains seen in November.
In the United States, economic data released for December presented a downturn in certain manufacturing and employment sectors. The number of job openings dropped to 7.6 million from 8.098 million, as per the JOLTS report. Moreover, new orders for manufactured goods decreased by 0.9%, following a revised 0.4% decline reported for November. This signals a weakening in the manufacturing sector towards the end of the year, suggesting slowing demand or logistical challenges in fulfilling orders.
The recent developments in New Zealand’s and the United States’ economies will likely exert contrasting pressures on the NZDUSD currency pair. The rise in the NZDUSD rate to 0.56459, a 0.48% increase, might reflect a market reaction to relatively steady wage growth and slight employment improvement in New Zealand, despite the uptick in unemployment and fall in building consents. Meanwhile, the U.S. showed downturns in both job openings and manufacturing orders, which could weaken the USD due to concerns about the labor and industrial sector performance. In the absence of major upcoming events affecting either currency, the NZDUSD pair could still see volatility as market participants digest recent economic signals and adjust expectations accordingly.
Latest from X (Twitter)
What can we expect from NZDUSD today?
NZDUSD on Tuesday rose 0.48% to 0.56459. Price is below 9-Day EMA while Stochastic is rising.
Updated daily direction for NZDUSD looks bullish as the pair ended higher after Tuesday trading session.
Looking ahead for the day, immediate upside resistance level is R1 at 0.56735 with break above could target R2 at 0.57011 or figure level area. While towards the downside, we are looking at daily low of 0.55813 as an important support. Break below this level could weaken the current bullish momentum. A break above 0.56550 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:
| R3 | 0.57472 |
| R2 | 0.57011 |
| R1 | 0.56735 |
| Daily Pivot | 0.56274 |
| S1 | 0.55998 |
| S2 | 0.55537 |
| S3 | 0.55261 |
#NZDUSD Trending on Twitter
[custom-twitter-feeds hashtag=”#NZDUSD” num=3 showheader=false]