NZD/USD finds some support near 0.5600 mark, seems vulnerable amid bullish USD


  • NZD/USD descends to a multi-day low amid the upbeat NFP-inspired modest USD strength.
  • The US economy added 263K jobs in September and the unemployment rate falls to 3.5%.
  • The data reaffirms Fed rate hike bets and favours the USD bulls amid the risk-off mood.

The NZD/USD pair comes under some selling pressure during the early North American session and drops to a four-day low following the release of the US labour market data. The pair, however, recovers a few pips and is currently trading with modest intraday losses, just below mid-0.5600s.

The US dollar hits a fresh weekly high in reaction to the upbeat US NFP report, which, in turn, exerts some downward pressure on the NZD/USD pair. The closely-watched jobs data showed that the unemployment rate unexpectedly fell to 3.5% in September from 3.7%. Furthermore, the US economy added more-than-anticipated, 263K new jobs during the reported month.

The data lifted bets for another supersized 75 bps Fed rate hike move in November, which is evident from a fresh leg up in the US Treasury bond yields. This, along with the prevalent risk-off mood, is seen underpinning the safe-haven buck and driving flows away from the risk-sensitive kiwi. The NZD/USD pair, however, find some support near the 0.5600 mark.

The lack of follow-through selling warrants some caution for bearish traders and before positioning for any further decline. That said, any meaningful recovery still seems elusive amid the prospects for a more aggressive policy tightening by the Fed. This, along with recession fears, suggests that the path of least resistance for the NZD/USD pair is to the downside.

Technical levels to watch

NZD/USD

Overview
Today last price 0.5637
Today Daily Change -0.0024
Today Daily Change % -0.42
Today daily open 0.5661
 
Trends
Daily SMA20 0.5837
Daily SMA50 0.607
Daily SMA100 0.619
Daily SMA200 0.6451
 
Levels
Previous Daily High 0.5815
Previous Daily Low 0.564
Previous Weekly High 0.5755
Previous Weekly Low 0.5565
Previous Monthly High 0.6162
Previous Monthly Low 0.5565
Daily Fibonacci 38.2% 0.5707
Daily Fibonacci 61.8% 0.5748
Daily Pivot Point S1 0.5596
Daily Pivot Point S2 0.553
Daily Pivot Point S3 0.5421
Daily Pivot Point R1 0.5771
Daily Pivot Point R2 0.588
Daily Pivot Point R3 0.5946

 

 

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