Current trend

Today, the NZD/USD pair is trying to win back some of the positions lost last week and is trading at 0.5923 on the back of a positive employment report in New Zealand.

According to Q2 data, the total number of filled jobs increased by 1.1% to 2.29M, 24.946K higher than in the previous period. Positive dynamics are observed in the fields of transport and postal services (4.1%), accommodation and catering sectors (2.5%), healthcare (1.6%), and construction (1.5%). The total gross profit of the companies for the year amounted to 8.7% or 13.1B New Zealand dollars, supporting the national currency.

The American dollar started the week with a decline, reaching 104.500 in the USD Index. Market participants focus on the approval of the new budget: the document regulating the steps of the authorities in 2023 expires on October 1, and if legislators fail to agree before this moment, then a significant part of state functions may be suspended, which, according to the forecast from The Goldman Sachs Group Inc. could threaten economic growth by 0.2% for each week of downtime. Analysts urge to take the current situation seriously, as this could lead to a downgrade of the country’s credit rating.

Support and resistance

The trading instrument is correcting near the support line of the global downward corridor with dynamic boundaries 0.6300–0.5850.

Technical indicators keep a stable sell signal: fast EMAs on the Alligator indicator move away from the signal line, and the AO histogram forms downward bars in the sell zone.

Resistance levels: 0.5970, 0.6070.

Support levels: 0.5890, 0.5790.

Trading tips

Short positions may be opened after the price drops and consolidates below 0.5890 with the target at 0.5790. Stop loss – 0.5950. Implementation period: 7 days or more.

Long positions may be opened after the price rises and consolidates above 0.5970 with the target at 0.6070. Stop loss – 0.5920.