In New Zealand today, the key quarterly employment statistics will be released expectations at the unemployment rate is expected to rise to 4.3% from 3.9%. The labor cost index is expected to rise also by 0.8% versus 0.8% last month.
Technically, the price of the NZDUSD is “hanging around” some key/important technical levels. On the tops, the 200-day moving average comes in at 0.60856. A break above that level would disappoint the sellers this week who traded the break lower below that moving average and below the 100-day moving average as well. The 100-bar moving average of the 4-hour chart comes in at 0.6112 and that would be another level to get to and through that would increase the bullish bias.
On the downside, the aforementioned 100-day moving average which has been broken this week as well, comes in at 0.60639. Break below that level and stay below that level gives the sellers the go-ahead to push the price lower. The low price for week reached 0.6037. Below that traders would look toward the 61.8% retracement of the move up from the October low. That level comes near the natural support level at 0.6000.
So traders will take the clue from the jobs report. A stronger report would likely extend the price higher and above its 200-day moving average (more bullish). A weaker report would likely pushed the price below the 100-day moving average increasing the bearish bias.
This article was written by Greg Michalowski at www.forexlive.com. Source