Global macro overview for 03/05/2017:
Good news from New Zealand's job market was released overnight. The first quarter of 2017 saw the unemployment rate decrease to 4.9% from 5.2%, while market participants expected a drop only to the level of 5.1%. Overall, employment increased 1.2% in the first quarter (5.7% on a yearly basis), following a downwardly revised 0.7% gain in the previous quarter. The workforce participation rate, which reflects the number of people employed or actively searching for work, rose to 70.6% in January-March. In conclusion, the job market seems to be quite all right and relatively stable, but there are other economic data like trade surplus and business confidence that support the overall positive economic projections for New Zealand.
Let's now take a look at the NZD/USD technical picture on the H4 timeframe. The market is trading in overbought conditions at the technical support of 0.6920. Moreover, the price has turned down sharply after hitting the cluster of local moveing averages around the level of 0.6955. If the technical support does not hold, then the next support for the bulls will be seen at the level of 0.6866, just above the recent swing low.
