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