NZD/USD chart on Trading View used for analysis
- NZD/USD is extending upbeat U.S. jobs data led weakness, trades 0.25% lower on the day.
- Data on Friday showed the US economy added 201K jobs in August, surged from July’s 147K (revised downwards from 157K), beating expectations of 191K.
- Rising Treasury yields and Trump's threat to up the ante in the trade war with China also weigh. USD200-467bn of 25% tariffs on China could come slamming down at any moment.
- China CPI rose 2.3 percent y/y in August, beating estimates for a rise of 2.1 percent and compared to a 2.1 percent rise in July.
- Meanwhile, PPI, fell to 4.1 percent in August from the July print of 4.6 percent but still bettered estimates of 4.1 percent. The drop in the PPI could add to the bearish tone around the commodity currencies.
- The major trades with a strong bearish bias, eyes channel base support at 0.6470. Breach there could see further weakness.
Support levels - 0.6447 (Feb 2016 low), 0.64, 0.6347 (2016 low)
Resistance levels - 0.6556 (5-DMA), 0.66, 0.6627 (21-EMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-Trade-Idea-1423280) is approaching final targets.
Recommendation: Hold for targets
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -32.9275 (Neutral), while Hourly USD Spot Index was at 27.0931 (Neutral) at 0430 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
