The New Zealand dollar shows mixed dynamics of trading, trying to build on the corrective momentum formed the day before. NZD/USD retreated from local highs of June 21 amid tensions in US-China relations, growing due to the visit of House Speaker Nancy Pelosi to Taiwan.
Today, significant pressure on the New Zealand dollar is exerted by weak macroeconomic statistics from New Zealand. The Employment Rate showed zero dynamics in Q2, while analysts had expected growth of the indicator by 0.4%. At the same time, the Participation Rate for the same period decreased from 70.9% to 70.8%, and the Unemployment Rate unexpectedly rose from 3.2% to 3.3%, contrary to forecasts of a decrease to 3.1%. In turn, the Labour Cost Index increased by 1.3% QoQ and 3.4% YoY, which turned out to be better than analysts' forecasts at 1.1% QoQ and 3.3% YoY.
On the D1 chart Bollinger Bands are trying to reverse horisontally. The price range is narrowing, reflecting ambiguous dynamics of trading in the short term. MACD is growing preserving a weak buy signal (located above the signal line). The indicator is trying to consolidate above the zero level. Stochastic remains horizontal. Traders should wait for the clarification of trading signals in the next few days.
Resistance levels: 0.6300, 0.6350, 0.6400, 0.6450. | Support levels: 0.6200, 0.6146, 0.6079, 0.6040.