NZD/USD has been in a volatile bearish trend recently. Today was a very important day for NZD as New Zealand Employment report for Q1 was published, which revealed employment growth of 1.2%, stronger than the consensus for a 0.8% gain. The Unemployment Rate fell to 4.9% which was expected to be at 5.1%. However, despite upbeat reports NZD could not quite dominate USD. On the USD front, ADP Non-Farm Employment report showed 177k new jobs instead of the forecast for 178k. This helped USD to gain more strength against NZD recently. Along with the ADP report, we have ISM Non-Manufacturing PMI report which is due later today. The index is expected to be at 56.1 which previously was at 55.2. Crude Oil Inventories report is expected to log a -3.3M drawdown last week from at -3.6M on the previous week. Overall, USD is likely to dominate NZD in the coming days as USD is winning favor with investors. Despite positive economic data from New Zealand today, NZD failed to gain over USD and this does signal a further bearish movement in this pair.
Now let us look at the pair from the technical view. The price has already rejected the bulls with a greater proportion today. The pair is still going on its decline, heading for 0.6890 support area. The price is expected to hit the support of 0.6890. If the price breaks below 0.6890 with a daily close, then we will consider selling opportunities with a downward target at 0.6550. On the other hand, if the price bounces off from 0.6890 support and rejects the bears with a daily close, then we will be looking forward to buy with a target towards 0.70 resistance area.
