NZD/USD drops to 2-week lows near 0.6760 on softer New Zealand jobs
|- The NZD/USD pair marked fresh low on weak New Zealand jobs report.
- The unemployment rate jumped to 4.3% from 3.9% while the employment change softened to 0.1% from 1.1% during Q4 2018.
The New Zealand dollar lost nearly 70 pips against the USD to near 0.6760 lows just after the New Zealand quarterly employment report on late Wednesday. The job numbers disappointed the Kiwi optimists, as the headline figures weakened more than forecast during the last quarter of 2018 after registering an upbeat tone in the previous quarter.
The unemployment rate missed the 4.1% forecast to 4.3% whereas employment change weakened 0.1% by undermining the market consensus of 0.3% during the fourth quarter last year. The labor participation rate also softened to 70.9 from 71.1 expected & prior. It should also be noted that the previous quarter releases were 3.9% for the unemployment rate and 1.1% for the employment change.
After the news, the NZD/USD pair flashed fresh daily lows at 0.6762 while the losses were carried forward overnight with the pair trading near 0.6770 while writing.
With the sluggish employment report adding pressure on the Kiwi, any upbeat statement during the virtual town hall meeting for teachers by the Fed Chairman Jerome Powell at 00:00 GMT on Thursday can add further weakness into the pair.
NZD/USD Technical Analysis
NZD/USD’s slump is yet to break the 200-day simple moving average figure around 0.6760, which in-turn signal brighter chance of its pullback to the 0.6805 including 50-day SMA. In case prices recover beyond 0.6805 the 0.6870 and the 0.6910 may regain buyers’ attention.
On the downside, a break below 0.6760, the 100-day SMA level of 0.6720 and an upward sloping trendline at 0.6650 seem to be the important supports to watch.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.