Improved Employment In New Zealand Pushes NZDUSD Higher
Aayush Jindal
Key Highlights
New Zealand Employment Change and unemployment rate report was released by the Statistics New Zealand, which pointed higher employment change and participation rate.
Employment change came in at 1.2% in the fourth quarter of 2014, compared with the forecast of 0.8%.
Unemployment rate increased from 5.4% to 5.7% whereas the market was expecting a decline to 5.3%.
New Zealand Employment ReportEarlier during the Asian session, the Employment Change and unemployment rate report was released by the Statistics New Zealand. The outcome was mixed, as the employment change registered a gain of 1.2% in the fourth quarter of 2014, compared to the last quarter. On the other hand, the unemployment rate increased from 5.4% to 5.7%. The most surprising part was the fact the labor force participation rate reached a record 69.7 percent. Moreover, the annual wage inflation, as measured by the labor cost index (LCI) rose by 1.8%. Considering the quarterly change annual wage inflation stood at 0.5%.Overall, the data was on the positive side, which pushed the Kiwi dollar higher in the near term. There was a short squeeze noted in NZDUSD, which took the pair above the 0.7400 resistance area.RBNZ Governor SpeechThe RBNZ Governor was also scheduled for a speech during Asia. The main point to note from his speech was the mention that they would need confidence spare capacity with labor market generating substantial inflation rise close to expectation before they can consider and rate hike.Technical AnalysisThe NZDUSD surged higher after the release, and cleared an importance resistance around the 0.7350-60 area. There was a bearish trend line on the 4 hour chart as well, which paved way for more upsides in NZDUSD. Currently, the pair is testing the 38.2% Fibonacci retracement level of the last leg from the 0.7889 high to 0.71773 low. The next level of interest might be around the 50% fib level, which is sitting just below the 100 simple moving average (SMA) – 4H.On the downside, initial support is around the 55 SMA (4H), followed by the broken trend line which might act as a barrier for the pair.US ISM Non-Manufacturing IndexLater during the NY session, the US ISM Non-Manufacturing Index will be released by the Institute for Supply Management (ISM). The forecast is slated for a minor rise from the last reading of 56.2 to 56.3 in January 2015. Any miss might help the NZDUSD pair moving ahead.
Overall, the data was on the positive side, which pushed the Kiwi dollar higher in the near term. There was a short squeeze noted in NZDUSD, which took the pair above the 0.7400 resistance area.RBNZ Governor SpeechThe RBNZ Governor was also scheduled for a speech during Asia. The main point to note from his speech was the mention that they would need confidence spare capacity with labor market generating substantial inflation rise close to expectation before they can consider and rate hike.Technical AnalysisThe NZDUSD surged higher after the release, and cleared an importance resistance around the 0.7350-60 area. There was a bearish trend line on the 4 hour chart as well, which paved way for more upsides in NZDUSD. Currently, the pair is testing the 38.2% Fibonacci retracement level of the last leg from the 0.7889 high to 0.71773 low. The next level of interest might be around the 50% fib level, which is sitting just below the 100 simple moving average (SMA) – 4H.
On the downside, initial support is around the 55 SMA (4H), followed by the broken trend line which might act as a barrier for the pair.US ISM Non-Manufacturing IndexLater during the NY session, the US ISM Non-Manufacturing Index will be released by the Institute for Supply Management (ISM). The forecast is slated for a minor rise from the last reading of 56.2 to 56.3 in January 2015. Any miss might help the NZDUSD pair moving ahead.
Overall, the data was on the positive side, which pushed the Kiwi dollar higher in the near term. There was a short squeeze noted in NZDUSD, which took the pair above the 0.7400 resistance area.RBNZ Governor SpeechThe RBNZ Governor was also scheduled for a speech during Asia. The main point to note from his speech was the mention that they would need confidence spare capacity with labor market generating substantial inflation rise close to expectation before they can consider and rate hike.Technical AnalysisThe NZDUSD surged higher after the release, and cleared an importance resistance around the 0.7350-60 area. There was a bearish trend line on the 4 hour chart as well, which paved way for more upsides in NZDUSD. Currently, the pair is testing the 38.2% Fibonacci retracement level of the last leg from the 0.7889 high to 0.71773 low. The next level of interest might be around the 50% fib level, which is sitting just below the 100 simple moving average (SMA) – 4H.
On the downside, initial support is around the 55 SMA (4H), followed by the broken trend line which might act as a barrier for the pair.US ISM Non-Manufacturing IndexLater during the NY session, the US ISM Non-Manufacturing Index will be released by the Institute for Supply Management (ISM). The forecast is slated for a minor rise from the last reading of 56.2 to 56.3 in January 2015. Any miss might help the NZDUSD pair moving ahead.