Solid News

New Zealand Labor Market Declines Again

2/1/2023 12:25 PM

Against the disappointing New Zealand labor market report, the NZD/USD pair dropped to 0.6432.

Q4 employment rose only 0.2% after gaining 1.3% in the previous period, which led to a correction in the unemployment rate to 3.4% from 3.3% earlier, and this is the second consecutive increase in the rate after hitting the Q2 low of 3.2%, indicating a negative trend in the sector. Nevertheless, the share of the economically active population remained at 71.70%, and the wage dynamics index added 1.1%, although analysts had expected a value of 1.2%.

After a positive start to the week, the US dollar fell to 101.800 in the USD Index against a decrease in business confidence from the Conference Board to 107.1 points, which is below 109.0 points in December and similar to analysts' expectations. Tonight, investors are waiting for the decision of the US Federal Reserve on interest rates: futures fix a high probability of adjusting the value by 0.25%, which means a slowdown in monetary policy tightening for the first time since the beginning of autumn.

The trading instrument is approaching the resistance line of a narrow corridor, preparing for a reversal.

Technical indicators have begun to reverse: fast EMAs on the Alligator indicator are narrowing the range of fluctuations and approaching the signal line, while the AO histogram forms downward bars in the buying zone.

Resistance levels: 0.6500, 0.6680. | Support levels: 0.6360, 0.6210.

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