Axiory Global Research Team
Axiory Global Ltd.
Traders sold the NZDUSD pair on Tuesday and it was down 0.4% during the US session as investors are anxious ahead of New Zealand's labor market data.
The pair was trading at around 0.6375 today, well-off from three-month highs reached on Monday.
Later in the session, the mentioned labor market data are due, with the unemployment rate expected to rise to 4.1% in the third quarter, up from 3.9% in the previous quarter. The employment change is forecast to slow notably, from 0.8% to 0.3%. However, the labor cost index is expected to rise a bit to 2.3% year-on-year.
Overall, this looks like a batch of weak data, which might cause further selling on the NZDUSD pair.
The pair stalled near the strong resistance of previous highs at around 0.6450, which seems a bit negative for the Kiwi. As long as it remains below this level, the short-term outlook is negative, targeting the 0.6350 zone.
If this support is broken, further weakness toward 0.6250 could occur.
Volatility is expected to be elevated after the mentioned data, thus investors should be cautious.
Trading FX/CFDs on margin bears a high level of risk, and may not be suitable for all investors. Before deciding to trade FX/CFDs you should carefully consider your investment objectives, level of experience, and risk appetite. You can sustain significant loss.
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