Nzdusd steadies as mixed us economic data fuels market uncertainty

NZDUSD Analysis

Performance after Thursday
Period	Pct	Chg	Momentum
Thursday	0.02%	1 Pips
Week to-date	2.35%	131.3 Pips
March	2.35%	131.3 Pips

Upcoming key events (London Time)

Fri 01:30 PM USD Nonfarm Payroll Employment
Fri 01:30 PM USD Average Hourly Earnings (12-mth)
Fri 05:30 PM USD Federal Reserve Chair Jerome Powell speech

What happened lately

The United States saw a mixed set of economic data that might influence market sentiment. Nonfarm Business Labor Productivity increased to 1.5% in the fourth quarter from a previous 1.2%, as per the Bureau of Labor Statistics. This improvement indicates higher efficiency in labor input relative to output, suggesting a boost in economic productivity. Alongside, Unit Labor Costs decreased to 2.2% from 3% in the third quarter. This decline suggests that labor costs are rising at a slower pace, which may relieve inflationary pressures. The Department of Labor also reported that initial unemployment insurance claims for the week ending on March 1st dropped significantly to 221,000 from 242,000. This reduction in jobless claims may signal a more robust labor market. Furthermore, new orders for manufactured goods climbed by 1.7% in January, bouncing back from a revised decrease of 0.6% in December, as reported by the Census Bureau. This growth in manufacturing orders could reflect stronger demand, potentially leading to increased production activity.

The NZDUSD currency pair experienced a marginal increase of 0.02% to settle at 0.57260. The recent economic news from the U.S. presents a mix of potentially bullish signals, such as increased productivity, reduced labor cost rise, and larger manufacturing orders, offset by bearish sentiment from a strong labor market reflected in the falling jobless claims. A stronger U.S. economy could strengthen the USD relative to the NZD. Moreover, upcoming high-impact events, including the U.S. Nonfarm Payroll Employment, Average Hourly Earnings, and a speech by Federal Reserve Chair Jerome Powell, add uncertainty to the pair’s short-term trajectory. Any perceived strengthening in the U.S. economy, or hints of tighter monetary policy, could further support the USD, possibly weighing against the NZD. As such, traders might exercise caution and closely watch these developments to anticipate shifts in the NZDUSD exchange rate. The pair remains in consolidation, and market participants will likely seek clarity from these economic cues to make informed trading decisions.

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What can we expect from NZDUSD today?

NZDUSD on Thursday rose 0.02% to 0.57260. Price is above 9-Day EMA while Stochastic is rising.

Updated daily direction for NZDUSD looks mixed as the pair is likely to consolidate above 0.57197 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.57320 or trades above daily pivot 0.57258. Break above could target R1 at 0.57322. While to the downside, we are looking at 0.57197 (S1) and daily low of 0.57195 as support levels. NZDUSD need to break on either side to indicate a short-term bias. A break above 0.57320 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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