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NZD : Jobs Report May Not Save the Kiwis

(Wed, 6 May 2020). The New Zealand Dollar struggled to capitalize on a fairly rose local jobs report despite the coronavirus denting global growth. In the first quarter, New Zealand saw its unemployment rate climb to just 4.2% from 4.0%. Economists were anticipating this figure to rise to 4.4% instead.

Meanwhile the country unexpectedly saw employment growth at 1.6% y/y versus just 0.7% expected. That was the fastest pace since the fourth quarter of 2018. Average hourly earnings was also impressive at 1.4% q/q versus 0.9% anticipated. That was the most growth since the third quarter of 2018.

Despite the rather robust figures – all things considered – the New Zealand Dollar found little respite. That is understandable given that the data is unlikely to materially alter the near-term policy trajectory for the RBNZ. Rather, the focus for the sentiment-linked NZD/USD will likely remain on market mood.


NEW ZEALAND DOLLAR TECHNICAL ANALYSIS
On the 4-hour chart, NZD/USD continues to consolidate between converging trend lines. These are rising support from March and falling resistance from December, red and pink lines respectively. A push above immediate resistance at 0.6069 exposes 0.6130 while a turn lower through 0.6014 places the focus on 0.5989.


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