The NZDUSD currency pair reaches the level of 0.6000, as the US Dollar encounters strong selling pressure caused by weak demand for labor.

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• NZD/USD kisses 0.6000 as the US Dollar faces intense selling pressure due to soft labor demand.

The pair currently trades last at 0.59904.

The previous day high was 0.5979 while the previous day low was 0.5887. The daily 38.2% Fib levels comes at 0.5944, expected to provide support. Similarly, the daily 61.8% fib level is at 0.5922, expected to provide support.

The NZD/USD pair rallied and tested the psychological resistance of 0.6000 in the early New York session. The Kiwi asset discovers significant buying interest as the United States labor market’s resilience eases due to higher interest rates by the Federal Reserve (Fed).

After fewer job vacancies in July, a weak private employment report for August confirmed that labor demand has softened as firms preferred to continue operating with the current labor force due to the deteriorating demand environment.

US Automatic Data Processing (ADP) reported that fresh payrolls in August were 177K, which was significantly lower than expectations of 195K and July’s reading of 324K. Investors should note that the four-month outperforming spell of US private employment has come to an end.

Releasing heat from a tight labor market would also keep inflationary pressures under control. Fed Chair Jerome Powell conveyed at the Jackson Hole Symposium that inflation is getting more responsive to the labor market. Jerome Powell also conveyed that further policy action will remain data-dependent and that easing labor market conditions could allow the Fed to deliver a steady interest rate decision at the September monetary policy meeting.

As per the CME Fedwatch Tool, more than 90% odds are indicating that interest rates will remain steady at 5.25-5.50% in the September policy. For the November policy, 57% chances are supporting a stable interest rate policy.

On the New Zealand Dollar front, investors await the Caixin Manufacturing PMI for August, which will be published on Friday at 01:45 GMT. The economic data is seen nominally higher at 49.3 vs. the former release of 49.2. Investors should note that a figure below the 50.0 threshold is itself considered a contraction in activities. The New Zealand Dollar as a proxy to China’s economy would face selling pressure if the economic data remains weak.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6004 at the time of writing. Pair opened at 0.5972 and is trading with a change of 0.54 % .

The pair is trading above its 20 Daily moving average @ 0.5987, below its 50 Daily moving average @ 0.6115 , below its 100 Daily moving average @ 0.6146 and below its 200 Daily moving average @ 0.6225

The previous day high was 0.5979 while the previous day low was 0.5887. The daily 38.2% Fib levels comes at 0.5944, expected to provide support. Similarly, the daily 61.8% fib level is at 0.5922, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.5913, 0.5854, 0.5821
• Pivot resistance is noted at 0.6005, 0.6038, 0.6097

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