FxWirePro: NZD/USD Shrugs-Off Upbeat Jobs Data, Slips Below 0.69 Handle, Good to Sell Rallies

FxWirePro: NZD/USD Shrugs-Off Upbeat Jobs Data, Slips Below 0.69 Handle, Good to Sell Rallies

4 May 2016, 07:13
Roberto Jacobs
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FxWirePro: NZD/USD Shrugs-Off Upbeat Jobs Data, Slips Below 0.69 Handle, Good to Sell Rallies

  • NZD/USD reversed early spike on the back of upbeat NZ jobs data, and has slipped below the 0.79 handle. 
  • Data released earlier today showed New Zealand economy added 38,000 jobs in the March quarter, the largest increase in 12 years. 
  • The Kiwi spiked to hit 0.6940, but quickly revesed upside as broadbased rebound in the greenback overshadowed stronger than expected NZ employment change numbers. 
  • Renewed optimism towards the US dollar combined with falling dairy prices also weighed down on the NZD/USD pair.  
  • Prices fell 1.4% in the latest Global Dairy Trade (GDT) auction following a 3.8% gain previously.  
  • NZD/USD trades with a downside bias for the day, with immediate resistance at 0.69 and support at 0.6836 (Apr 25th lows). 
  • Focus now shifts towards the US employment data due later today ahead of the Chinese Caixin Services PMI due for release tomorrow.

Recommendation: Good to sell rallies around 0.6890/0.69, SL: 0.6950, TP: 0.6840/0.68 

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