19 Jun 2015
NZD/USD muted around 0.6920, awaits fresh incentives
FXStreet (Mumbai) - The New Zealand dollar recovers most overnight losses versus the American dollar in early Asia, keeping NZD/USD supported above 0.69 handle. The Kiwi moved away from close to five ear lows reached at 0.6879 on Thursday, as markets continue to digest the recent flurry of US economic news, shrugging off the latest weak NZ jobs ads print.
NZD/USD recovers from 0.6912
Currently, the NZD/USD pair trades flat at 0.6925, clinching on to the 0.69 barrier. NZD/USD erased losses and trades muted in Asia with markets little affected by uninspiring NZ job ads figures. New Zealand’s job ads rose 0.1% in May, according to the ANZ Job Advertisement series, but were still 2.6% higher year-on-year last month.
However, the kiwi is expected to remain pressured in the day ahead in absence of fresh economic updates for the pair. Hence, markets may continue to weigh the latest NZ GDP print and the series of upbeat US macro data released on Thursday for further momentum.
On Thursday, NZD/USD was heavily sold-off after poor NZ GDP data which showed that GDP growth was just 0.2% in the March quarter, according to Statistics New Zealand, coming in much weaker than the market and the RBNZ's forecast expansion of 0.6%. December quarter growth was revised lower from 0.8% to 0.7%.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6941 (June 12 Low) levels and above which it could extend gains 0.7000 levels. To the downside immediate support might be located at 0.6874 (June 17 Low) below that at 0.6800 (July 2010) levels.
NZD/USD recovers from 0.6912
Currently, the NZD/USD pair trades flat at 0.6925, clinching on to the 0.69 barrier. NZD/USD erased losses and trades muted in Asia with markets little affected by uninspiring NZ job ads figures. New Zealand’s job ads rose 0.1% in May, according to the ANZ Job Advertisement series, but were still 2.6% higher year-on-year last month.
However, the kiwi is expected to remain pressured in the day ahead in absence of fresh economic updates for the pair. Hence, markets may continue to weigh the latest NZ GDP print and the series of upbeat US macro data released on Thursday for further momentum.
On Thursday, NZD/USD was heavily sold-off after poor NZ GDP data which showed that GDP growth was just 0.2% in the March quarter, according to Statistics New Zealand, coming in much weaker than the market and the RBNZ's forecast expansion of 0.6%. December quarter growth was revised lower from 0.8% to 0.7%.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6941 (June 12 Low) levels and above which it could extend gains 0.7000 levels. To the downside immediate support might be located at 0.6874 (June 17 Low) below that at 0.6800 (July 2010) levels.