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NZDUSD Consolidation at Local Lows

9/5/2022 12:50 PM

The New Zealand dollar shows a weak growth, keeping close to the local lows of July 15. NZD/USD is testing 0.6100 for a breakout. At the beginning of the week, trading activity remains restrained, due to closed markets in the US and Canada due to the Labor Day. Meanwhile, investors are evaluating the report on the US labor market for August published at the end of last week.

The statistics showed an increase in the Nonfarm Payrolls by 315.0 thousand, which turned out to be 15.0 thousand better than market expectations. In July, the increase in new jobs amounted to 526.0 thousand. At the same time, Average Hourly Earnings in August slowed down from 0.5% to 0.3%, while the forecast was 0.4%. The Unemployment Rate for the same period unexpectedly accelerated sharply from 3.5% to 3.7%, although analysts did not expect any changes. The released report cannot be called unambiguously strong, but it is unlikely to influence the decision of the US Federal Reserve on the interest rate. The next meeting of the regulator will be held on September 21, and it is expected that the value will be adjusted by another 75 basis points.

Bollinger Bands in D1 chart demonstrate active decrease. The price range is narrowing, pointing at the multidirectional nature of trading in the short term. MACD is declining keeping a weak sell signal (located below the signal line). Stochastic, on the contrary, keeps an uncertain growth, reflecting the oversold condition of the instrument in the nearest time intervals.

Resistance levels: 0.6100, 0.6155, 0.6200, 0.6250. | Support levels: 0.6049, 0.6000, 0.5960, 0.5919.

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