The New Zealand dollar was trading near six week highs on Tuesday and the NZDUSD pair was 0.25% stronger during the US session, hovering near 0.6680.
Investors are eagerly waiting for tonight’s New Zealand labor market data for the third quarter. The employment change is forecast to stay at 0.5%, while the unemployment rate should also stay unchanged at 4.5%. Moreover, the market expects the participation rate to remain at 70.9%.
However, wage growth is seen slowing slightly, from 2.1% to 1.9%, which could be Kiwi negative. Volatility is usually higher after these numbers.
Additionally, the GDT price index (which measures change in the average price of dairy products sold at auction) is due today and might influence the New Zealand dollar as well.
The major resistance for the pair is now at previous lows and highs near 0.6730 and it its broken, the kiwi could fly all the way to the 200-day moving average at 0.69. Dips could be bought in the 0.6650 demand area and if this zone cracks, further decline to 0.66 might occur.
Everything posted herein is the Personal Opinion of the Author(s) and does not represent a statement made by TeleTrade. TeleTrade is providing this for informational purposes.
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