The New Zealand dollar fell today, dragged down by underwhelming employment data. The currency was in a retreat for four consecutive sessions versus the euro and for five against the Japanese yen.
New Zealand employment dropped 0.2% in the June quarter of this year from the previous three months, whereas analysts had expected a substantial increase by 0.7%. At the same time, the unemployment rate decreased from 4.9% to 4.8%, in line with expectations. The Labor Cost Index demonstrated the same 0.4% growth as in the previous quarter, while economists had hoped it would accelerate to 0.5%.
NZD/USD declined from 0.7465 to 0.7420 as of 12:45 GMT today. NZD/JPY went down from 82.37 to 82.20 intraday (touching the lowest since two weeks) before trading at 82.23.
FOMC was perceived dovish by traders worldwide, that is why we do have a come back to the main trends, so weaker dollar, stronger EM, higher stocks and commodities.
Gold climbed back above the 1258 USD/oz resistance. Currently that will be the closest support. That breakout creates a nice buying opportunity with the desired – high risk to reward ratio. Potential target for this movement lays slightly below the 1300 USD/oz
NZDJPY is a good one for the long-term position carry traders. Once the weekly candle will close above the neck line, we will have a great buying opportunity here. Huge inverse head and shoulder pattern has chances to lift the price hundreds of pips higher, additionally giving you positive swaps.
USDCNH – this one is slightly against the weak dollar trend. Here, the buy signal emerges. The price is bouncing of the long-term support and creates a hammer on a daily chart. In addition to that we are in a wedge formation, which promotes an upswing. All that together increases the chances for a bullish movement.