New Zealand Unemployment Rate Due
The latest labour market data for New Zealand is due later today and traders will be closely watching the reading given the improvement made last time around. The prior month’s reading came in at 4.9% with the market looking for an unchanged reading this time. However, if the unemployment rate is seen to have fallen lower than this, NZD could be subject to a reversal higher, especially given the current pressure on the antipodean currency. On the other hand, a weaker than expected reading (unemployment rate increase) could see the current NZD sell-off exacerbated.
Where to Trade NZD Unemployment Rate?
Given the current strength in USD, NZDUSD looks interesting today. The pair failed on approach to the .7315 level and is now potentially carving out the right shoulder of a large head and shoulders pattern. Should price break below the .7110 level, this will open the way for a test of .6966 and .6791 thereafter. Alternatively, if .7110 holds, this could see price trading back up to test the .7315 level, putting focus back on the topside.
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