NZD/USD: Bulls attack 0.7050 on strong NZ Q2 Employment data

  • NZD/USD remains on the front foot on upbeat employment data from home.
  • New Zealand Q2 jobs report amplified concerns over RBNZ rate hike in 2021.
  • Market sentiment dwindles amid fresh geopolitical woes, mixed covid and stimulus headlines.
  • Aussie-China data, risk catalysts can offer immediate direction ahead of the key US ADP and ISM PMI figures.

NZD/USD holds on to the weekly gains while taking the bids around 0.7035, 0.26% intraday, during early Wednesday morning in Asia. The kiwi pair recently gained on firmer second quarter (Q2) employment report from New Zealand (NZ).

NZ Employment Change rose past 0.7% market consensus and 0.6% previous readouts to 1.0% whereas the Unemployment Rate slumped below 4.5% forecast and 4.7% prior to 4.0%.

Read: NZ jobs data beats expectatons, NZD/USD marginally higher

Other than the positive data, the Reserve Bank of Australia’s (RBA) readiness to keep the September tapering on the table despite covid woes at home also backs the odds of the Reserve Bank of New Zealand’s (RBNZ) rate hike in 2021.

Recently easy covid numbers from Australia and the UK, versus a spike in the US infections, joins the RBNZ’s steps to curb the lending for homes while offering additional motivation to the NZD/USD bulls.

On the contrary, fresh geopolitical tussles between the West and Iran, as well as with China, test the pair buyers. Additionally, uncertainty over US President Joe Biden’s infrastructure spending bill passage in the Senate and cautious sentiment ahead of the key data/events of the week also probe the pair’s upside momentum.

It’s worth noting that a -0.10% print of the S&P 500 Futures, despite Wall Street’s upbeat performance, also challenges the NZD/USD bulls.

Having witnessed the initial reaction to the NZ data, the pair traders should keep their eyes on the Australian Retail Sales for June and China’s Caixin Services PMI for July for further direction. However, major attention will be given to the risk catalysts and the US data. Among them, ADP Employment Change  for July, an early signal for Friday’s US Nonfarm Payrolls (NFP), as well as ISM Services PMI will be the key to follow.

Technical analysis

NZD/USD battles 200-day EMA around 0.7020 ahead of confronting a downward sloping trend line from June 15, near 0.7030. Even if the bulls manage to cross the 0.7030 hurdle, a confluence of 100-day and 200-day SMA, near 0.7100 will be the key to watch. On the contrary, failures to stay beyond 0.7000 may recall the bears targeting the 0.6920 horizontal support.

Additional important levels

Today last price 0.703
Today Daily Change 0.0061
Today Daily Change % 0.88%
Today daily open 0.6969
Daily SMA20 0.6977
Daily SMA50 0.7063
Daily SMA100 0.7102
Daily SMA200 0.7095
Previous Daily High 0.6993
Previous Daily Low 0.6952
Previous Weekly High 0.7022
Previous Weekly Low 0.6902
Previous Monthly High 0.7106
Previous Monthly Low 0.6881
Daily Fibonacci 38.2% 0.6978
Daily Fibonacci 61.8% 0.6968
Daily Pivot Point S1 0.695
Daily Pivot Point S2 0.693
Daily Pivot Point S3 0.6908
Daily Pivot Point R1 0.6991
Daily Pivot Point R2 0.7013
Daily Pivot Point R3 0.7033



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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD slides under 1.16 as US Retail Sales smash estimates

EUR/USD is trading under 1.16 after US Retail Sales smashed estimates with 0.7% in September. Treasury yields are rising. The risk-on mood continues to underpin the pair, as the ECB policymaker Wunsch dismisses inflation concerns. 


GBP/USD retreats below 1.3750 after US data

GBP/USD has pared some of its gains after US Retail Sales beat estimates, with the core group hitting 0.8% last month. Earlier, investors shrugged off dovish comments from two BOE members. 


XAU/USD slumps to $1,770 area on upbeat US data, surging US bond yields

Gold started the last day of the week on the back foot and extended its slide to a fresh daily low of $1,770 in the early trading hours of the American session pressured by the dollar's resilience and surging US Treasury bond yields.

Gold News

Crypto bulls on winning streak pushing for more

Bitcoin price favors bulls reaching $60,000 by the end of this week and onwards to new all-time highs by the end of next week. Ethereum price broke a bearish top line and could hit new all-time highs by next week in tandem with Bitcoin. 

Read more

Why is Tesla going up?

Tesla's (TSLA) stock price has finally pushed higher in a series of steady and sure moves. We had nearly given up on our bullish call with Tesla stock as it kept struggling around the $800 level.

Read more