Nzdusd falls as us job openings rise, causing anticipation of fed rate hikes

NZDUSD Analysis

Performance after Wednesday
Period	Pct	Chg	Momentum
Wednesday	-0.48%	-30 Pips
Week to-date	-1.42%	-90.1 Pips
October	-1.35%	-85.6 Pips

Upcoming key events (London Time)

Fri 01:30 PM USD Nonfarm Payroll Employment

What happened lately

In the United States, the Job Openings and Labor Turnover Survey (JOLTS) for August has shown an increase in job openings, rising to 8.04 million from a revised figure of 7.711 million in July. This data, reported by the Bureau of Labor Statistics, indicates a stronger demand for labor which is a positive signal for the U.S. job market and potentially hints at economic resilience. The JOLTS figure is a key metric as it reflects the level of unmet labor demand in the economy, and a higher number indicates that employers are actively seeking to hire more workers.

The increase in job openings suggests that businesses are optimistic about economic conditions and may need more staff to either maintain or increase production levels and services. This can also imply wage pressures as employers compete to attract talents, which may contribute to inflationary pressures. The job market’s strength is crucial as it influences the Federal Reserve’s monetary policy decisions, possibly leading to considerations of further interest rate adjustments to manage inflation. The report sets a positive tone ahead of future employment and economic indicators.

The rise in U.S. job openings reported, however, led to a decrease in the value of NZDUSD by 0.48%, dropping to 0.62597. This decrease can be attributed to the stronger U.S. job market data which likely heightens expectations of potential rate hikes by the Federal Reserve, thereby strengthening the U.S. dollar, making it more attractive to investors compared to the New Zealand dollar. The anticipation generated by the uptrend in the JOLTS data could push investors to favor the USD over the NZD due to better yield expectations, which commonly influences forex markets. The market’s focus will shift towards the upcoming high-impact event, the U.S. Nonfarm Payroll Employment report, as traders look for confirmation of a strong labor market that could further impact the exchange rate and forex market stability.

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What can we expect from NZDUSD today?

NZDUSD on Wednesday dropped -0.48% to 0.62597. Price is below 9-Day EMA while Stochastic is falling.

Updated daily direction for NZDUSD looks bearish as the pair posted lower in Wednesday trading session.

Looking ahead for the day, immediate support level is at S1 0.62403 with break below could see further selling pressure towards S2 at 0.62208. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 0.63130 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 0.62572 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:

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