NZDUSD shows potential to retest this year’s high
The New Zealand data calendar is quiet this week and Australia's GDP result didn't spark any action in the Aussie dollar. So NZDUSD will be driven by US data into the weekend.
Top of the list will be Friday's jobs number and wage data. Expectations are for 190,000 jobs added, similar to the average gain over recent months, and more than enough to absorb new entrants to the workforce. Therefore the US unemployment rate should continue to drift down to under 4%.
Management and risk description
The Kiwi dollar displays a potential short-term bottoming structure (inverse head & shoulders reversal pattern – see hourly chart below), with support now at 0.7255/.7240, looking for rally above resistance at 0.7300/0.7310 and on to 0.7350, en route to the key resistance level at 0.7435.
Entry: Kiwi is today seen as a buy at 0.7285/0.7270.
Source: ThomsonReuters. Create your own charts with SaxoTrader; click here to learn more.