• NZD/USD edged lower on Wednesday after a mixed jobs report reinforced the case for steady interest rates in the near-term
• New Zealand’s unemployment rate rose to a decade high of 5.4% in Q4, slightly above expectations, while employment grew 0.5% as firms added staff, signalling signs of labour market recovery.
•The rise in unemployment lifted rate futures as markets reduced bets on a hike in the 2.25% cash rate before September, with a quarter-point move then around 78% priced in.
• The broader NZD recovery trend remains intact for now, with the next upside target at the July 1 high of 0.6120
• Immediate resistance is located at 0.6063(Daily high), any close above will push the pair towards 0.6096(23.6%fib).
•Support is seen at 0.5987 (38.2%fib) and break below could take the pair towards 0.5900(50%fib).
Recommendation: Good to buy around 0.6020 with stop loss of 0.5920 and target price of 0.6120
