NZDUSD Analysis
| Performance after Tuesday | |||||
| Period | Pct | Chg | Momentum | ||
| Tuesday | -0.91% | -57.8 Pips |  |
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| Week to-date | -1.05% | -66.5 Pips |  |
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| October | -0.97% | -61.5 Pips | |
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Upcoming key events (London Time)
No major events for the day.
What happened lately
The U.S. Job Openings and Labor Turnover Survey (JOLTS) reported a rise to 8.04 million job openings in August, a significant increase from the revised figure of 7.711 million in July. According to the Bureau of Labor Statistics, this indicates a robust job market. Additionally, the U.S. Chicago Purchasing Managers’ Index (PMI) also showed a slight improvement, climbing to 46.6 points in September from 46.1 points in August. Both sets of data highlight underlying strength in the U.S. economy, suggesting sustained economic momentum.
In New Zealand, the NZIER Business Confidence for the third quarter showed a remarkable improvement, with the index rising to -1% from the previous quarter’s -44%. This significant rebound indicates renewed optimism among New Zealand businesses, driven likely by better economic policies or improving market conditions. On the contrary, New Zealand’s seasonally adjusted building consents for new dwellings decreased sharply by -5.3% in August, down from a revised growth of 26.4% in July, as reported by Stats NZ. This decline could signal a slowdown in the housing sector, potentially reflecting broader economic challenges.
The NZDUSD currency pair recently dropped by -0.91%, falling to 0.62833. The strong U.S. economic data, particularly the rise in job openings and a higher PMI, underscore a robust labor market and economic conditions, which typically strengthen the USD. Meanwhile, mixed economic indicators from New Zealand, with improved business confidence but a significant decline in building consents, contribute to uncertainty. The decline in building consents might outweigh the positive business sentiment, exerting downward pressure on the NZD. Consequently, the NZDUSD pair is likely experiencing downward pressure due to stronger U.S. data coupled with mixed signals from New Zealand’s economy.
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What can we expect from NZDUSD today?
NZDUSD on Tuesday dropped -0.91% to 0.62833. Price is below 9-Day EMA while Stochastic is falling.
Updated daily direction for NZDUSD looks bearish as the pair posted lower in Tuesday trading session.
Looking ahead for the day, immediate support level is at S1 0.62493 with break below could see further selling pressure towards S2 at 0.62153. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 0.63471 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 0.62642 would indicate selling pressure.
For the week to-date, take note that NZDUSD is mixed as compared to the prior week.
Key levels to watch out:
| R3 | 0.64151 |
| R2 | 0.63811 |
| R1 | 0.63322 |
| Daily Pivot | 0.62982 |
| S1 | 0.62493 |
| S2 | 0.62153 |
| S3 | 0.61664 |
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