• EUR/ NZD dipped after data showed New Zealand unemployment unexpectedly eased in the first quarter.
• New Zealand’s unemployment rate fell to 5.3% in Q1, but signs of spare capacity and weak wage growth kept expectations for a July rate hike intact.
• The jobless rate came in below the 5.4% forecast, while employment rose just 0.2% versus 0.3% expected, and the participation rate was 70.4%, slightly under the 70.5% forecast.
• New Zealand’s economy continues to struggle with a post-COVID slowdown, marked by weak growth and subdued consumer and business confidence.
• The central bank held its cash rate at 2.25% in April to assess the impact of Middle East tensions, but signalled it stands ready to act if inflation rises.
• Immediate resistance is located at 1.9958(SMA20), any close above will push the pair towards 2.0062(50%fib).
• Immediate support is seen at 1.9821 (38.2%fib) and break below could take the pair towards 1.9760(Lower BB).
Recommendation: Good to sell around 1.9860 with stop loss of 2.0000 and target price of 1.9770
