NZD/USD, NZD/USD, NZD/USD, NZD/USD, NZD/USD, NZD/USD, NZD Technical Outlook, Job Ads – Talking Points After an encouraging Wall Street session, Asia-Pacific markets may experience a bullish start. June job postings in New Zealand growth of 1% in a positive indicator for the labor market NZD/USD breaks through trendline resistance, aiming for the 20-day SMA. The Asia-Pacific Outlook for Thursday The New Zealand Dollar gained a tiny amount of ground against the US Dollar overnight, according to the Federal Open Market Committee’s (FOMC) June meeting minutes. While it demonstrated that members, on the whole, support loose monetary policy conditions in the short term, rising inflation pressures prompted some to propose a policy exit plan. Despite the hawkish signals in the FOMC minutes, there is still a lot of uncertainty in the economy. According to freshly updated estimates from the Centers for Disease Control and Prevention, this has likely only increased since the June conference, with the rapidly spreading Delta Covid strain already being the prevalent variation in the United States (C.D.C). This tension is spreading over the world, presenting policymakers in key countries with the difficult task of determining how best to respond at a time when limits have only recently been lifted. New Zealand is expected to maintain its tough stance, with Chris Hipkins, the country’s Covid-19 Response Minister, declaring earlier this week that the country will not accept living with Covid, as other countries such as the United Kingdom have proposed. While New Zealand’s approach is likely to result in fewer Covid infections and fatalities, it is also likely to stifle economic growth. In the short to medium term, this could harm the New Zealand Dollar. Specifically, if Covid generates a large bout of risk aversion and, as a result, supports the safe-haven US Dollar, NZD may suffer extra pressure. Nonetheless, the Bank of New Zealand reported this morning that job advertisements in June increased by 1% month over month. On the equity front, we may see a good start to the Thursday trading session for the Asia-Pacific region after Wall Street came back after snapping a multi-day winning run. However, the Hang Seng Index (HSI) in Hong Kong may continue to be under pressure. Over the last week, Chinese regulators have increased their pressure on technology businesses, with Didi’s NYSE listing showcasing the probe’s impact. NZD/USD Technical Predictions: Although uninspiringly, the New Zealand Dollar broke above a major trendline created off the May swing high. In the short term, though, upside momentum may grow, with the MACD line heading higher after a break above its signal line. However, a recent bearish crossover between the 20-day SMA and the 200-day SMA could put downward pressure on prices. Before rising higher, the NZD/USD has to break above the falling 20-day SMA. The recently breached trendline could provide as support on the downside. TradingView was used to construct this NZD/USD daily chart. TRADING RESOURCES FOR THE NEW ZEALAND DOLLAR—- Thomas Westwater, a DailyFX.com analyst, wrote this article. Use the comments area below to reach Thomas, or follow him on Twitter at @FxWestwateron./n
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