FxWirePro: NZD/USD Daily Outlook

Chart - Courtesy Trading View 

NZD/USD was trading 0.27% lower on the day at 0.6304 at around 13:25 GMT. The pair has erased early gains and slipped lower amid strong US dollar buying.

Markets expect the U.S. Federal Reserve to lift its benchmark rate above 5% to squeeze inflation after data showed the labour market remains strong.

Data released on Friday showed that the US economy added 517K jobs in January, beating consensus estimates by a big margin. 

The unemployment rate unexpectedly fell to edged down to 3.4%, or the lowest since May 1969. 

Average Hourly Earnings were up 0.3% MoM and 4.4% over the past 12 months, down from 0.4% in December and 4.9%, respectively. 

Technical indicators have turned bearish. Momentum is with the bears, Stochs and RSI are biased lower.

MACD and ADX support downside in the pair. Bearish RSI divergence on the daily charts adds to the downside bias.

Support levels - 0.6251 (110-EMA), 0.6187 (200-DMA)

Resistance levels - 0.6323 (55-EMA), 0.6409 (21-EMA)

Summary: NZD/USD trades with a bearish technical bias. Bias remains bearish as long as pair holds below 200H MA. Dip till 200-DMA at 0.6187 likely.