The New Zealand dollar slumped nearly 45 points in the Asian market yesterday under the influence of unanticipated employment data, followed by another nearly 45-point plunge in U.S. trading by the Federal Reserve's strength. New Zealand reported an unemployment rate of 4.2 percent in the first quarter, outpacing previous values and market expectations of 4.3 percent. In the first quarter, however, employment rose nearly 1.5 percent year-on-year, well below the previous 2.3 percent and market expectations of 2.2 percent. Employment participation in the first quarter was only 70.4 percent, below expectations and previous values of 70.9 percent. Fundamental information suggests that the New Zealand Fed is unlikely to cut interest rates in the short term. But in the medium to long term, New Zealand's Federal Reserve is considering appropriate easing due to weak domestic economic and global economic slowdown under trade pressures. Combined with the technical side, in the vicinity of 0.6600 formed support level is enough to give short-term trend must support. But the strength of the New Zealand dollar's rise was seen as early as late March, because the New Zealand dollar's multiple shocks to the 0.6960 support level have failed, and New Zealand does not want the New Zealand dollar to be too strong to affect his exports. So the downside risks to the New Zealand dollar will increase in the future.
The market is now waiting for an opportunity to break through the underside, which is likely to be the next Fed rate decision.
