The NZD/USD has dipped slightly from its recent highs following weaker than expected U.S. Non-Farm Employment Change Numbers and Average Hourly Earnings reports. The currency pair reached a high of nearly 0.60490 on Friday before seeing some selling pressure. This was driven by financial institutions reacting to the disappointing U.S. jobs data and considering speculative buying opportunities for the NZD/USD.
Despite the slight pullback, the NZD/USD remains near the 0.60000 level, attracting speculative interest as it hovers around 0.59930. The currency pair has been in a downward trend since January, largely due to the strength of the USD and expectations of unchanged monetary policy from the Federal Reserve.
However, recent U.S. wage data falling below expectations could shift outlooks and lead to a weaker USD stance among financial institutions. The University of Michigan Inflation Expectations reading this week will provide further insights into the U.S. economic landscape.
Last week’s highs in the NZD/USD demonstrated short-term bullishness, but the currency pair continues to face headwinds. Speculators may be drawn to the NZD/USD due to its current price levels challenging support levels, potentially indicating a reversal in fortunes.
Short-term momentum traders could benefit from betting on the upside when support levels are tested, with resistance at 0.59960 and support at 0.59885. The high target is 0.60090, while the low target stands at 0.59830. Traders looking to engage in forex trading in New Zealand can consider various brokers for their trading needs.