The Kiwi has taken a beating this week as fundamentals have not been in favor of the currency. It started with a bad Dairy number, and then continued with a big miss in Employment change.
Although the Unemployment Rate came in as expected at 6.0%, It was still a drop from previous reading at 5.9, in fact, New Zealand has been posting steady declines in Unemployment since last year this time.
To top that off, the USD has been strong, which has been putting pressure on all the majors. Today, the Kiwi saw a relatively strong rebound, but after a slew of bad data, the fundamental outlook is weak. Thus selling Kiwi on rallies will remain the preferred trade plan.
The chart below shows the NZDJPY already reversed after a strong uptrend on the 4H chart, the current down channel can see sell orders near the top of the channel.
Although the Unemployment Rate came in as expected at 6.0%, It was still a drop from previous reading at 5.9, in fact, New Zealand has been posting steady declines in Unemployment since last year this time.
To top that off, the USD has been strong, which has been putting pressure on all the majors. Today, the Kiwi saw a relatively strong rebound, but after a slew of bad data, the fundamental outlook is weak. Thus selling Kiwi on rallies will remain the preferred trade plan.
The chart below shows the NZDJPY already reversed after a strong uptrend on the 4H chart, the current down channel can see sell orders near the top of the channel.
