- The NZD/USD snaps two consecutive days of gains, down 0.15%, amid a positive market mood.
- The US ADP employment report was dismal, though it barely influenced the US dollar.
- NZD/USD is downward biased, and failure to break above a downslope trendline opened the door for the YTD low.
The New Zealand dollar climbs but retreats from weekly highs around 0.6662 after mixed than foreseen NZ jobs report released in the Asian session. At the time of writing, the NZD/USD is trading at 0.6637.
The US ADP Employment report was ignored by investors as they prepare for Friday's NFP
An hour and a half before Wall Street’s opened, the ADP Jobs report was released. The figures were dismal, showing the losses of more than 301K employments when polled economists expected at least 207K private jobs added to the economy.
The ADP Chief Economist said that “The labor market recovery took a step back at the start of 2022 due to the effect of the Omicron variant and its significant, though likely temporary, impact to job growth.” Nevertheless, officials in the White House and Fed members warned that the January employment report would be disappointing, subject to the impact of the Omicron variant.
Meanwhile, in the Asian session, New Zealand’s employment report showed that the unemployment rate fell from 3.3% to 3.2%, while the Labor Cost Index jumped two tenths from the previous month to 2.6%., but short of the 2.9% foreseen.
The RBNZ is expected to hike rates 25 basis points to the Overnight Cash Rate (OCR) at the February meeting. Nevertheless, wage growth is lagging widely, so the NZ central bank could decide to slow rate hike increases in 2022, allowing inflation to shoot up.
NZD/USD Price Forecast: Technical outlook
The NZD/USD is downward biased, as shown by the daily moving averages (DMAs) residing above the spot price, despite the recent jump from YTD lows, at 0.6529. All the DMAs have a downward slope, suggesting the downtrend could be accelerating. Furthermore, a bottom downslope trendline of a descending channel, broken to the downside on January 26, located around the 0.6650-60 range, was challenged through the day.
Failure to break the abovementioned opened the door for further losses. The NZD/USD first support would be the figure at 0.6600. A breach of it, then the NZD/USD would face January 28 high, previous resistance-turned-support at 0.6588, followed by the YTD low at 0.6529.
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.
Recommended content
Editors’ Picks
EUR/USD clings to gains near 1.0700, awaits key US data
EUR/USD clings to gains near the 1.0700 level in early Europe on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
USD/JPY keeps pushing higher, eyes 156.00 ahead of US GDP data
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, recapturing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming intervention risks. The focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold closes below key $2,318 support, US GDP holds the key
Gold price is breathing a sigh of relief early Thursday after testing offers near $2,315 once again. Broad risk-aversion seems to be helping Gold find a floor, as traders refrain from placing any fresh directional bets on the bright metal ahead of the preliminary reading of the US first-quarter GDP due later on Thursday.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price.
Meta takes a guidance slide amidst the battle between yields and earnings
Meta's disappointing outlook cast doubt on whether the market's enthusiasm for artificial intelligence. Investors now brace for significant macroeconomic challenges ahead, particularly with the release of first-quarter GDP data.