- NZD/USD has shown a decent recovery above 0.6170 as USD Index has sensed selling pressure.
- As per the consensus, the US economy added 150K jobs in April lower than the former additions of 145K.
- NZD/USD is continuously facing pressure near the downward-sloping trendline plotted from 0.6386.
The NZD/USD pair has scaled sharply above the immediate resistance of 0.6170 in the early Tokyo session. Earlier, the Kiwi asset witnessed an intense sell-off on Monday after failing to claim the round-level resistance of 0.6200.
The US Dollar Index (DXY) has sensed sheer selling pressure near its two-week-old resistance of 102.20. It seems that investors are digesting pre-Federal Reserve (Fed) policy anxiety.
Wednesday’s New Zealand and United States Employment data will be keenly watched. NZ’s Employment Change (Q1) is expected to remain steady at 0.2%. While the Unemployment Rate is seen rising to 3.5% from the former release of 3.4%.
On the US front, investors will keep an eye on Automatic Data Processing (ADP) Employment data. As per the consensus, the US economy added 150K jobs in April lower than the former additions of 145K.
NZD/USD is continuously facing pressure near the downward-sloping trendline plotted from April 05 high at 0.6386 on an hourly scale. The Kiwi asset has made a higher high after a lower high lower low structure, hinting for a potential bullish reversal ahead.
The New Zealand Dollar is facing immediate selling pressure near horizontal resistance placed from April 20 high at 0.6204.
Meanwhile, the Relative Strength Index (RSI) (14) has slipped back into the 40.00-60.00 range, indicating consolidation ahead.
Should the asset break above April 20 high at 0.6204, kiwi bulls will drive the asset towards April 19 high at 0.6227 followed by April 07 high at 0.6265.
In an alternate scenario, a breakdown of April 26 low at 0.6110 will drag the asset toward March 08 low at 0.6088 followed by the 15 Nov 2022 low at 0.6058.
NZD/USD hourly chart
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 fluctuates near 1.0700 after US data
EUR/USD stays in a consolidation phase at around 1.0700 in the American session on Wednesday. The data from the US showed a strong increase in Durable Goods Orders, supporting the USD and making it difficult for the pair to gain traction.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold stays in consolidation above $2,300
Gold finds it difficult to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to turn north.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.