NZD/USD Rate Recovering from Its Low of the Year amid News from Labour Market

FXOpen

Yesterday's news showed that New Zealand's labour market is stronger and more resilient than expected.

In the fourth quarter of 2023, employment grew by 0.4% in the fourth quarter (forecast = +0.3%, quarter earlier = -0.1%). The unemployment rate is 4%, forecast = 4.3%.

A strong labour market indicates a margin of safety in the economy. And that may suggest that the Reserve Bank of New Zealand's tight monetary policy to quell inflation may continue longer.

The news helped the NZD strengthen against other currencies. Moreover, an interesting situation develops on the NZD/USD chart:

→ based on the results of yesterday, the price recovered and strengthened above the low C, which today is the minimum of 2024.
→ Moreover, level C is in the region of 50% of the rollback from the impulse movement A→B.
→ At the same time, the chart shows signs of a failed bearish breakout of the level of 0.6050, which previously served as resistance.

Considering the above arguments, there is reason to believe that the bulls may try to resume the uptrend (shown by the blue channel) after the price of NZD/USD has fallen below its border (for now - not for long). The trigger for a new surge in volatility could be news about the state of the labour market in the US, data is expected today at 16:30 GMT+3.

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

Dollar Falls After Inflation Data: Is a Change in Medium-Term Trends on the Horizon? USD/CAD Retracts from Nearly 2-Month High Market Analysis: EUR/USD Dives While USD/JPY Continues To Rise Inflation Data and Fed Verdict Could Set Dollar's Summer Trend EUR/GBP Rate at 21-Month Low Post-European Parliament Elections

Latest articles

Cryptocurrencies

Bitcoin Price Losing Correlation with Stock Market

On May 17, Bloomberg reported that Bitcoin's price was highly correlated with tech stocks.

At that time, it was suggested that the leading cryptocurrency was perceived as a growth asset, influenced by:
→ the launch of Bitcoin ETFs;
→ expectations of Fed

Indices

S&P 500 Index Hits Record After Major News

Yesterday, significant news regarding US inflation was released. According to ForexFactory:
→ Year-on-year Consumer Price Index (CPI): actual = 3.3%, forecast = 3.4%, previous = 3.4%;
→ Month-on-month CPI: actual = 0.0%, forecast = 0.1%, previous = 0.3%;
→ Month-on-month Core CPI (excluding

What Are Upside and Downside Tasuki Gap Patterns?
Trader’s Tools

What Are Upside and Downside Tasuki Gap Patterns?

In the dynamic world of forex and CFD trading, the ability to recognise crucial chart patterns is essential for making informed decisions. Among the patterns frequently sought after by traders is the Tasuki Gap setup. This article delves into understanding

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.