NZD/USD pays a little heed to the strong Q3 New Zealand (NZ) jobs data, licking wounds near a two-week low surrounding 0.7100. That said, the kiwi pair dropped the most in five weeks the previous day before the bears took a breather during the early Wednesday morning in Asia.

That said, NZ Q3 Employment Change provided a strong beat to the 0.4% expected and 1.0% prior with the 2.0% figures while the Unemployment Chang also dropped heavily past 4.0% previous readouts and 3.9% market consensus to 3.4% during the stated period. Earlier in the day, the Reserve Bank of New Zealand’s bi-annual Financial Stability Review (FSR)  report said, “We expect banks to be more cautious about high debt-to-income loans given the risks of rising interest rates and the economic outlook.”

It’s worth mentioning that New Zealand’s fortnightly release of the GDT Price Index jumped 4.3% versus 2.2% prior.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

Looking forward, the pre-Fed trading lull could challenge the NZD/USD moves but monthly releases of the US ADP Employment Change and ISM Services PMI may entertain intraday traders. Should the Fed announce a higher-than-expected $15 billion per month tapering, the Kiwi pair has further south to trace.

NZD/USD not only broke a two-week-old trading range but also slipped below 61.8% Fibonacci retracement (Fibo.) of May-August downside, around 0.7120, which in turn suggests further downside by the pair. However, the 200-DMA level near 0.7100 becomes a tough nut to crack for the bears before targeting August month’s high and 50% Fibonacci retracement, respectively around 0.7090 and 0.7060. Alternatively, the 61.8% Fibo. level near 0.7120 will precede the lower end of the stated range, close to 0.7130, will probe the NZD/USD pair’s short-term rebound. Following that, September’s high of 0.7171 could lure the bulls.

NZDUSD retesting trend line near 0.7100

Nov 03 2021