Market risky sentiment driven by the fall of tech stocks on the U.S. stock market has put pressure on commodity currencies such as the New Zealand dollar and the Aussie.
However, the New Zealand dollar managed to record gains in early Asian session trading this morning following a positive New Zealand employment data report.
The increase in employment doubled compared to projections while the unemployment rate fell lower than expected.
The NZD dollar has rebounded against the US dollar after the report was published, in contrast to the price movement situation in the previous session.
Seeing the price movement on the chart of the NZD/USD currency pair, the price showed a daily decline of around 90 pips up to the level of 0.71200 after the bullish pattern at the beginning of the week failed to be maintained.
In the Asian session this morning, the price rose again to the resistance level of the Moving Average 50 (MA50) on the hourly frame of the price movement but the momentum slowed towards the opening of the European session.
If the rise is successfully continued, the price is likely to head back to the resistance level around 0.72400 and the high reached last week around 0.72800.
However, if the US dollar continues to be strong, prices will fall lower continuing the bearish trend that has formed since last weekend.
The decline that passed the daily low yesterday is seen to be to the support level of 0.70700 which is in the RBS zone (resistance become support).
