NZDUSD Rallies After Unprecedented Nonfarm Payrolls News

FXOpen

The New Zealand Dollar (NZD) spiked higher against the US Dollar (USD) on Friday after the unprecedented Nonfarm Payrolls news. The technical bias remains bullish because of a Higher Low in the recent downside move on the daily chart.

Technical Analysis

As of this writing, the NZDUSD pair is being traded near 0.6933. A support may be noted around 0.6875, the horizontal support ahead of 0.6677, the swing low of the recent downside move as demonstrated in the following daily chart.

NZDUSD Rallies After Unprecedented Nonfarm Payrolls News

On the upside, the pair is likely to face a hurdle near 0.6966, the high of March 2016 ahead of 0.7055, the swing high of the recent upside rally on the daily chart. A break above 0.7055 will confirm the bullish bias, validating a move towards the 0.7500 region in the long run.

US Employment

The US economy added only 38,000 new jobs in May, the weakest performance since September 2010, the Labor Department said Friday. This reading is well below expectations of a 164,000 gain. Revisions showed employment gains for April and March were revised down by a combined 59,000 jobs, according to the labor department.

The unemployment rate however, fell to 4.7% in May from 5.0% in April. Expectations were for a 4.9% rate. Meanwhile, average hourly wages climbed 0.2% to $25.59. Hourly pay rose 2.5% from May 2015 to May 2016.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair around 0.6875 appears to be a good strategy in short to medium term.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

European Currencies Adjust to Support Levels: Is Growth Possible? NZD/USD Exchange Rate Falls from Nearly 5-Month High Market Analysis: GBP/USD and EUR/GBP Poised For More Losses Dollar Falls After Inflation Data: Is a Change in Medium-Term Trends on the Horizon? USD/CAD Retracts from Nearly 2-Month High

Latest articles

What Is a Petrodollar and How Does It Affect the Global Economy?
Trader’s Tools

What Is a Petrodollar and How Does It Affect the Global Economy?

The concept of petrodollars is an insightful topic to study. The petrodollar isn’t a specific currency but a financial system that reflects economic and political forces that have shaped international relations for decades. This concept is critical to understanding

Indices

Nasdaq 100 Index Reaches 20,000 Points for the First Time

On 30 May, we noted some uncertainty in the price behaviour of the Nasdaq 100 (US Tech 100 mini on FXOpen) near the resistance level of 18,840, as shown by arrow #1.

Following this, the price declined and tested

Forex Analysis

European Currencies Adjust to Support Levels: Is Growth Possible?

A week rich in macroeconomic data contributed to the decline of the euro, yen, and pound. Notably, the following events were significant:

  • Inflation falling for the second consecutive month (0.2% against the expected 0.3%);
  • The publication of the
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.