New Zealand Dollar, Second Quarter Jobs Report, NZD / USD, Covid – Call Points
Wednesday ‘s Asia – Pacific outlook
The New Zealand dollar rose overnight as markets became risky assets. The strength of the kiwi dollar appears to have remained strong on the trading day after New Zealand announced its second-quarter job report. Compared to the quarter, employment increased by 1.0%. According to a Bloomberg study, this is well overestimated by 0.7%. In addition, the unemployment rate exceeded 4.0%, 4.4% higher than expected.
Innovative data is likely to encourage contributions for the New Zealand Reserve Bank. RBNZ will meet about two weeks later on August 18, when overnight index swaps estimate a 25 basis point rise in interest rates, according to Bloomberg. This is reasonable given the latest star data and high inflation rates, which have made significant progress since the recession caused by the pandemic.
Elsewhere, Wall Street closed higher, supported by positive revenues. Benchmark S&P 500 the index pushed stocks higher, rising 0.82% during the day. Rising Covid cases, driven by a highly transferable Delta variant, are affecting the mood. Large-scale closures in the United States are considered unlikely to help market sentiment to survive despite the pick-up of cases.
Meanwhile, the risk-sensitive Australian dollar also points higher. Yesterday, The Reserve Bank of Australia (RBA) left untouched the plan to reduce weekly asset purchases. Some assumed that the central bank could suspend the plan, given recent closures across the country. This contributed to some increase Aussie The dollar facing Caixin’s Chinese PMI data during Wednesday’s Asia-Pacific trade session.
NZD / USD technical outlook:
NZD /USD rose overnight and is fast approaching its declining 50-day moving average (SMA), which could provide significant short-term resistance. The currency pair is on the rise after retesting the trend line of previous resistance, which formed the upper limit of the declining wedge. This means that the upward movement can continue from here. Alternatively, the decline may fall if prices fall back to the upper limit of the wedge. In general, it seems that almost failed wedge breaking is back in the game.
NZD / USD daily schedule
The chart has been created TradingView
New Zealand Dollar Trading Resources
– Written by Thomas Westwater, DailyFX.com analyst
Be in touch Thomas, use the comments section below, or @FxWestwaterTwitter