• EUR/NZD climbed sharply on Thursday as the kiwi remained continued to pressured by weak New Zealand employment data released earlier this week.
• New Zealand’s jobless rate rose to a nine-year high in Q3 as businesses held back on new hires amid economic weakness.
• New Zealand’s economy showed no growth in the first half of the year, with a muted rebound expected as immigration slows and housing remains soft.
• The RBNZ has lowered the Official Cash Rate by 300 basis points since August last year to 2.5%, and most economists expect another 25-basis-point cut at its final meeting of the year on November 26.
• Immediate resistance is located at 2.0519 (23.6%fib), any close above will push the pair towards 2.0593(Higher BB).
• Immediate support is seen at 2.0267 (SMA 20) and break below could take the pair towards 2.0189(38.2% fib).
Recommendation: Good to buy on dips around 2.0470 with stop loss of 2.0350 and target price of 2.0580
