The NZD/USD Falls on Weak Employment
Rowan Crosby • 1 min read
The NZD/USD has had a bit of a tumble today on the back of some worse than expected employment data.
Last quarter employment crept up 0.1% which was below the analyst expectations of 0.3%. Meanwhile, the unemployment rate jumped to 4.3% with expectations for only 4.1%.
Clearly, this is a poor result and is pointing to some weaker than hoped for economic conditions. Last quarter was a stronger result and it was thought that this quarter would, in fact, be weak.
This is just a little weaker than many had been looking for, hence the downside.
The Kiwi Outlook
We’ve now taken out the 0.6800 level and price appears to be looking at the next major level which is 0.6700.
The other major factor in the breakdown has clearly been the resurgent USD.
The Greenback dumped when the FOMC turned dovish on rates in 2019. However, the rebound has been equally as fierce.
Either way, we look like we want to be testing key support levels at 0.6750 and 0.6700 in the near future.