FxWirePro: NZD/USD uptrend loses momentum but bullish setup remains

• NZD/USD edged lower on Thursday as an unexpected rise in New Zealand’s unemployment rate dampened optimism about the labour market.

• New Zealand’s unemployment rate climbed to a decade high of 5.4% in the fourth quarter, slightly above expectations, while employment rose 0.5% as firms added staff, offering tentative signs of a labour-market recovery.

• The rise in unemployment pushed up rate futures as markets scaled back bets on a hike in the 2.25% cash rate before September, with a quarter-point move then priced at around 78%.

• A decade-high in the jobless rate saw markets defer a first rate hike to October from September. Pricing for a move by July has gone to 40%, from 60% before the data.

•  Immediate resistance is located at 0.6051(Feb 4th high), any close above will push the pair towards 0.6080(23.6%fib).

•Support is seen at 0.5983 (38.2%fib) and break below could take the pair towards 0.5900(50%fib).

 Recommendation: Good to buy around 0.5970 with stop loss of 0.5900 and target price of 0.6100