NZD has been good with gains until recent employment reports hit the market making the currency lose some grounds against the USD in the bullish non-volatile trend. Recently NZD Employment Change report published with worse than expected at -0.2% which previously was at 1.1% which was expected to decrease till 0.7% whereas a negative outcome was quite unexpected which made the currency lose its recent gains. Along with this report, NZD Unemployment Rate report was published as expected at 4.8% which was slightly lower than the previous value of 4.9% but this did not quite help the currency to continue with the gains. Today NZD ANZ Commodity Prices report was published with a negative value at -0.8% which previously was positive at 2.1%. On the USD side, today USD Unemployment Claims report was published with a slightly better figure at 240k from the previous figure of 245k which was expected to decrease to 242k, ISM Non-Manufacturing PMI report was published with worst figure at 53.9 from the previous value of 57.4 which was expected to be at 56.9 and Factory Orders report showed good growth to 3.0% from -0.3% which was expected to be at 2.9%. Due to mixed economic reports, USD has lost some grounds against NZD ahead of NFP report to be published tomorrow. Currently, NZD is expected to gain further against USD in the coming days as the bullish trend still seems intact due to the non-volatile structure.
Now let us look at the technical view, the price has recently bounced off the dynamic level support of 20 EMA after the worst reports of USD published today. Currently, the price is residing inside the support area of 0.7370-0.7460 and as the price remains above the 20 EMA and lowest support level of 0.7370 the price is expected to be bullish with a target towards 0.80 in the future.
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