Yesterday’s trade saw NZD/USD within the range of 0.7234-0.7331. The pair closed at 0.7304, gaining 0.56% on a daily basis.
At 9:42 GMT today NZD/USD was down 1.49% for the day to trade at 0.7196. The pair broke the first two key daily support levels and touched a daily low at 0.7177 at 8:20 GMT.
Fundamentals
New Zealand
Employment change, rate of unemployment
The number of people employed in New Zealand probably increased 0.8% in the fourth quarter of 2014 compared to the prior one, according to market expectations, after in Q3 employment rose by another 0.8%. Higher rates of increase tend to support the local dollar, as higher employment suggests good consumer spending outlook.
At the same time, the rate of unemployment in the country probably fell to 5.3% in Q4 from 5.4% in the third quarter of 2014. If so, this would be the lowest jobless rate since Q1 2009, when it was reported at 5.0%. “Due to strong migration, we have had the largest annual rise in the population in 10 years,” labor market and households statistics manager Diane Ramsay said in regard to the third quarters data. “We had 72 000 more people employed over the year, greater than the additional 64 000 people in the population. This pushed our employment rate up, to 65.2 of every 100 adults being in employment.” The construction industry accounted for almost 50% of the annual employment growth. Just over 40% of the growth in this industry was in Canterbury, while a further 17% was in Auckland, according to Statistics New Zealand.
The official employment data is due out at 21:45 GMT.
United States
Factory orders
Factory orders in the United States probably dropped 2.2% in December compared to November, following another 0.7% fall in the prior month. If so, this would be the fifth consecutive month of decline. Excluding the sector of transportation, factory orders dropped 0.7% in November. This indicator presents the total value of new purchase orders, placed at manufacturers for durable and non-durable goods, and can provide insight into inflation and growth in the US manufacturing sector. In case new orders dropped more than anticipated, this would have a bearish effect on the greenback. The US Census Bureau will release the official data at 15:00 GMT.
Pivot Points
According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 0.7290. In case NZD/USD manages to breach the first resistance level at 0.7345, it will probably continue up to test 0.7387. In case the second key resistance is broken, the pair will probably attempt to advance to 0.7442.
If NZD/USD manages to breach the first key support at 0.7248, it will probably continue to slide and test 0.7193. With this second key support broken, the movement to the downside will probably continue to 0.7151.
The mid-Pivot levels for today are as follows: M1 – 0.7172, M2 – 0.7221, M3 – 0.7269, M4 – 0.7318, M5 – 0.7366, M6 – 0.7415.
In weekly terms, the central pivot point is at 0.7324. The three key resistance levels are as follows: R1 – 0.7436, R2 – 0.7609, R3 – 0.7721. The three key support levels are: S1 – 0.7151, S2 – 0.7039, S3 – 0.6866.
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