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6 May 2015
NZD/USD sold-off below 0.75, weak NZ data weigh
FXStreet (Mumbai) - The New Zealand dollar remains heavily sold-off against its American counterpart in the mid-Asian session, driving NZD/USD deep in red below 0.75 barrier, after the latest labour report showed weaker-than-expected wage growth in the last quarter, prompting speculation that the RBNZ will cut interest rates to reignite inflation.
NZD/USD drops on weak NZ data
Currently, the NZD/USD pair trades lower by -0.96% at 0.7486, recovering from fresh three-week lows reached at 0.7459 on NZ jobs data. NZD/USD recovered partially although remains deep in red after poor NZ labour market report fuelled worries over consumer price growth spurring bets of further easing by the Reserve Bank of New Zealand (RBNZ).
New Zealand's private-sector wages rose 1.8% y/y in the March quarter, coming in below the market's and the RBNZ's forecast of a 2% rise.
The RBNZ target's medium term inflation of 1-3%, however the CPI rose just 0.1% in Q1 2015, raising concerns at the central bank that weak inflation may continue to effect wage outcomes.
Meanwhile, markets now turn their focus on employment data from both Australia and the US for further impact on the Kiwi.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7500 levels and above which it could extend gains to 0.7556 levels. To the downside immediate support might be located at 0.7459 levels below that at 0.7436 levels.
NZD/USD drops on weak NZ data
Currently, the NZD/USD pair trades lower by -0.96% at 0.7486, recovering from fresh three-week lows reached at 0.7459 on NZ jobs data. NZD/USD recovered partially although remains deep in red after poor NZ labour market report fuelled worries over consumer price growth spurring bets of further easing by the Reserve Bank of New Zealand (RBNZ).
New Zealand's private-sector wages rose 1.8% y/y in the March quarter, coming in below the market's and the RBNZ's forecast of a 2% rise.
The RBNZ target's medium term inflation of 1-3%, however the CPI rose just 0.1% in Q1 2015, raising concerns at the central bank that weak inflation may continue to effect wage outcomes.
Meanwhile, markets now turn their focus on employment data from both Australia and the US for further impact on the Kiwi.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7500 levels and above which it could extend gains to 0.7556 levels. To the downside immediate support might be located at 0.7459 levels below that at 0.7436 levels.