NZD/USD Slightly Bid on Best Q1 Jobs Since 2004
NZD/USD is mixed on a mixed jobs data release, with an initial offer, but now securing a bid on pre-announcement levels.
The unemployment rate increased to 5.7% vs 5.5% expected while average hourly earnings were lower than expected. The participation was an improvement at 69% vs the expected 68.6% while prior was 68.4%, and the employment change 1.2% q/q beat the expected +0.6% and prior at +0.9% while the employment change was 2.0% y/y and better than the expected +1.3%, all of which offering support to the bird. However, as noted here, this employment for Q1 2016 is the largest quarterly growth since Dec 2004.
NZD/USD has been losing steam in the rising channel commencing mid January of this year. To the downside, the 20 dma resides at 0.6906 as a key supporting and psychological level that if broken, (low 0.6892 so far) would put the rising support line in to jeopardy, guarding 0.6720. On a break of the 2016 highs, the next major target comes on the weekly sticks with Jan 2015 lows of 0.7176 ahead of the 100 weekly sma at 0.7285.