The New Zealand dollar rose sharply against the USD after positive employment numbers from New Zealand. Will the upward trend continue? The following NZDUSD technical analysis reveals.
November 7, OctaFX – In the third quarter, the unemployment rate declined to 3.9%. This was a sharp decrease from the previous 4.5% and the expected 4.4%. In the quarter, the participation rate jumped to 71.1%, which was higher than the consensus estimate of 70.9% while the employment change in the quarter rose by 1.1%.
These numbers are positive for the New Zealand economy and an indicator that the RBNZ will likely start thinking about tightening. Later today, traders will get a reaction from the bank when it releases its monetary policy statement.
NZDUSD Technical Analysis
The Kiwi rose sharply against the USD after the impressive quarterly jobs numbers. The NZDUSD pair reached an intraday high of 0.6768, which was the highest level since early August.
Today’s upward movement continued a momentum started in October when the pair reached a low of 0.6423. The double EMA of 15 and 30 days made a crossover on the daily chart indicating that the upward trend will continue.
This is confirmed by the ADX indicator and the Money Flow Index. Further upward trends will see the pair test the important resistance of 0.6800.
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