FxWirePro: NZD/USD eases following mixed bag of labour data, faces resistance at 200-DMA
The New Zealand dollar eased, reversing some of its previous session gains following a mixed bag of labour data released earlier in the day. New Zealand's unemployment rate fell in the final quarter of 2019 but jobs grow…
The New Zealand dollar eased, reversing some of its previous session gains following a mixed bag of labour data released earlier in the day.
New Zealand's unemployment rate fell in the final quarter of 2019 but jobs growth softened, cementing a view the central bank will stand pat on rates next week.
The unemployment rate in the fourth quarter declined to 4.0 percent from a downwardly revised 4.1 percent in the previous quarter, while jobs growth was flat, compared to forecasts for an unemployment rate of 4.2 percent and jobs growth of 0.3 percent.
The participation rate fell to 70.1 percent, its lowest since June 2017, while private-sector wages increased 0.6 percent over the previous quarter, with annual growth accelerating to 2.4 percent.
On Tuesday, the major plunged to a 2-month trough but retraced to close 0.4 percent higher at 0.6489.
The Kiwi was trading 0.1 percent down at 0.6480, having hit a low 0.6449 in the previous session, its lowest since December 2.
Technical indicators are bearish: RSI weak at 34.05, MACD supports downside and Stochs are at oversold levels.
Immediate resistance is located at 0.6505 (200-DMA), a break above could take it near 0.6532 (10-DMA).
On the downside, support is seen at 0.6465, a break below could drag it till 0.6449.
