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6 May 2015
NZD/USD: Dumps heavily on soft jobs market
FXStreet (Guatemala) - NZD/USD is currently trading at 0.7495 with a high of 0.7571 and a low of 0.7492.
NZD/USD has dropped on the back of the key jobs market data that came in softer than expected and this is giving the bears the green light to hammer the currency given that, to date, the jobs market has to an extent been what has been propping up the economy in an otherwise disinflationary global and domestic environment.
To date, in 2015, the Bird has been better bid overall, recovering from 0.7190/00 region and in recent weeks, riding the weakness of the greenback and the back wash of the hawkish entry to 2015. However, the RBNZ have stepped back a few paces in that respect and have recently taken a dovish stance and continue to verbally talk down the currency. This data will back the sentiment of a potential action from the Central Bank to the down side in the OCR over forthcoming interest rate meetings. Meanwhile, we also had the latest Global Dairy Trade’s auction that came as -3.5%, dropping yet again and in line with Fonterra lowering their forecasts last week.
NZD/USD is technically remaining the uptrend from the start of the year,
but is losing momentum with the bearish crossover in daily MACD. The head and shoulders are clearly bearish and 0.75 is about to give way, opening 0.7420 as bears first target.
NZD/USD has dropped on the back of the key jobs market data that came in softer than expected and this is giving the bears the green light to hammer the currency given that, to date, the jobs market has to an extent been what has been propping up the economy in an otherwise disinflationary global and domestic environment.
To date, in 2015, the Bird has been better bid overall, recovering from 0.7190/00 region and in recent weeks, riding the weakness of the greenback and the back wash of the hawkish entry to 2015. However, the RBNZ have stepped back a few paces in that respect and have recently taken a dovish stance and continue to verbally talk down the currency. This data will back the sentiment of a potential action from the Central Bank to the down side in the OCR over forthcoming interest rate meetings. Meanwhile, we also had the latest Global Dairy Trade’s auction that came as -3.5%, dropping yet again and in line with Fonterra lowering their forecasts last week.
NZD/USD is technically remaining the uptrend from the start of the year,
but is losing momentum with the bearish crossover in daily MACD. The head and shoulders are clearly bearish and 0.75 is about to give way, opening 0.7420 as bears first target.