- Summary:
- New Zealand's 3rd quarter employment data are due for release today, bu the US election results may put the NZDUSD in a tight spot.
The NZDUSD comes into focus as the New Zealand employment data hit the markets at 9.45 pm UTC. The projections are for employment change (quarterly) to have dipped from -0.4% to -0.7%. The markets also expect an attendant rise in the unemployment rate from 4.0% to 5.3%.
In other words, the markets are expecting the unemployment situation to have worsened in the 3rd quarter. The NZ economy is still trying to cope with the global economic downturn and closure of its borders. Businesses are not taking in new staff, and the labour market growth has hit significant headwinds. The situation may get worse when the employer support programs that have provided a COVID-era stimulus to handle employee costs start to wind up.
This quarter’s data release comes at a very auspicious time: the day of the US Elections.
Technical Outlook for NZDUSD
Now a warning. This news release will occur in the middle of the release of US election results. So expect the pair to have started showing some volatility.
Price is currently testing the 0.67037 resistance on the daily chart. This price level is the site of previous highs for July, registered on the 31st day. Bulls seeking to take the pair higher will need to push above the channel’s return line as well as the 0.67037 resistance, for 0.67996 to come into play. This move will reclaim the previous peaks that formed the double top of September 2020.
On the flip side, a rejection at the 0.67037 resistance may allow sellers to drive prices to the lower channel boundary. This boundary must give way for the support at 0.65858 to become attainable. 0.65050 and 0.63820 are possible downside targets if the greenback is sold aggressively.
NZDUSD Daily Chart
