- Kiwi slumps across the board in the Asian session today after worse-than expected NZ jobs data.
- New Zealand’s Unemployment has dropped to the lowest level in more than eight years, falling to 4.8 percent in the middle of the year.
- However, the participation rate fell 0.6 percentage points to 70.0 percent, the labour force contracted by 0.2 percent q/q.
- Data suggested a picture of continued moderate growth in economic activity, but still muted wage pressures.
- Bearish divergence noted on daily charts. Technical indicators have turned bearish.
- Stochs and RSI have rolled over from overbought levels. 5-DMA has turned.
- Scope for test of 0.7384 (converged 20-DMA & 23.6% Fib retrace of 0.6821 to 0.7557 rally).
Support levels - 0.7425 (weekly 200-SMA), 0.74, 0.7384 (converged 20-DMA & 23.6% Fib retrace of 0.6821 to 0.7557 rally)
Resistance levels - 0.7483 (5-DMA), 0.75, 0.7558 (July 27 high), 0.7613 (Feb 2015 high)
Recommendation: Good to go short on rallies around 0.7440/50, SL: 0.7490, TP: 0.74/ 0.7385/ 0.7335
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -78.2976 (Slightly Bearish), while Hourly USD Spot Index was at -12.6294 (Neutral) at 0640 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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