FxWirePro: NZD/USD holds support at 21-EMA, New Zealand job data miss weighs

Chart - Courtesy Trading View 

NZD/USD was trading 0.05% higher on the day at 0.6441 at around 09:30 GMT, hovers around 21-EMA support.

Data released earlier on Wednesday showed New Zealand's jobless rate edged up to 3.4% last quarter, above expectations and prior reading at 3.3%. 

The Reserve Bank of New Zealand had forecast the unemployment rate at 3.2%. Data showed signs of loosening in the labour market.

NZD/USD has erased some losses, Reserve Bank of New Zealand is expected to continue its hawkish stance despite weak Employment data.

Caution prevails ahead of Fed policy decision. Markets have priced in an interest rate hike and a potentially hawkish message from the central bank.

The Federal Reserve is widely expected to hike interest rates by 25 basis points, after U.S. inflation retreated over the past few months. 

Comments from Fed Chair Jerome Powell will be closely watched for further guidance, given that recent data signaled some resilience in the U.S. economy. 

NZD/USD price action has slipped below 200H MA, intraday bias has turned bearish. Upside remains capped below 5-DMA. 

Support levels - 0.6420 (21-EMA), 0.6316 (55-EMA)

Resistance levels - 0.6464 (5-DMA), 0.6473 (200H MA)

Summary: NZD/USD pivotal at 21-EMA support. Bearish RSI divergence raises scope for downside. Watch out for break below 21-EMA for further weakness.