For the past two and one-half weeks, the cross has been consolidating below the lower boundary of channel support (now resistance), measured from the troughs of June 20, 2010 and July 24, 2011. This suggests that EUR/NZD is in a holding pattern, and may be set for a push lower. But more consolidative action may be expected in the days ahead.
As the Asia-Pacific session gets underway, the market looks toward New Zealand jobs data for Q2 as key risk event for NZD. The Unemployment Rate and Employment Change figures are due shortly at 22:45 GMT; expectations are for a rate drop to 6.5% from 6.7% in Q1.