NZD/USD: NZ jobs-led rally short-lived, back below 0.7300

The bears fought back fought back control in the Asian trades, sending the NZD/USD back towards the mid-point of 0.72 handle, as upbeat jobs-led upwards spike was short-lived.

NZD/USD fails to sustain above 0.7300

Currently, the NZD/USD pair drops -0.22% to fresh session lows of 0.7270, having eroded over 50-pips from daily highs reached at 0.7323 post-NZ jobs release. The Kiwi rallied beyond 0.73 handle after the bulls were impressed by stronger New Zealand’s jobs report.

Although the gains were quickly reversed as the solid jobs figures were only a result of a new methodology implemented to calculate the employment data, which meant the bounce in jobs in Q2 was less upbeat than seemed prima-facie.

Moreover, lower oil prices added to renewed selling in the major amid increased speculation surround further RBNZ easing after the unimpressive jobs data. However, the downside looks cushioned as sentiment remains buoyed by better-than expected GDT auction results released a day before. Focus now remains on the FOMC minutes due later in the NA session.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7323 (daily high), above which it could extend gains to 0.7300 (round figure). To the downside immediate support might be located at 0.7231 (5-DMA) and from there to at 0.7199 (10-DMA).