NZD/USD bears await Fed speakers for further catalyst

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 6, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Guatemala) - NZD/USD is down making fresh highs after the Nonfarm Payrolls sell-off, targeting a clean break of the 0.65 handle with the October lows of 0.6437 in its sights.

    The jobs data was tremendous and the average hourly earnings posted the biggest year-over-year gain since 2009 and increased 0.4% vs the estimated 0.2% and previous 0.0% m/m, up 2.5% over the prev year.

    The headline number for October came in as 271K, much higher than the estimate of 180K while the prior number was revised to 137K from 142K. This data makes up for last month's disappointments and leaves a Fed hike by December more likely, underpinning the downside in NZD/USD. Next week we have a number of Fed speakers and Yellen will be making opening remarks at the Fed Policy Conference.

    NZD/USD downside levels

    Technically, the 55 DMA is being pressured at 0.6512 while hourly RSI (14) is well into oversold territory at 23 indicating a period of consolidation before the next leg down with 0.6420 and the vicinity of the yearly lows to play for at 0.6235 where price recovered from in September this year.
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