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  • Kiwi is solidly bid at three-months highs, courtesy of upbeat New Zealand jobs data.
  • The bid tone may further strengthen if the RBNZ reports an uptick in inflation expectations.
  • The US midterm election results may influence the demand for the US dollar.

The NZD/USD picked up a strong bid earlier today after Statistics New Zealand reported the third quarter unemployment rate at a decade low of 3.9 percent.

Notably, the employment growth rate more than doubled to 1.1 percent, from 0.5 percent in the previous quarter.

  • NZ unemployment-rate slumps to 10yr low 3.9% – TDS

A better-than-expected employment data may not steepen the OCR projections as wage growth remains subdued. The data released earlier today showed that quarterly wage growth slowed to 0.5 percent in the third quarter from 0.6 percent in the previous quarter. The annual wage growth also slowed to 1.9 percent, in line with expectations.

Nevertheless, markets are cheering an upbeat employment report. The NZD/USD is currently trading at 0.6737, having clocked a three-month high of 0.6743 earlier today.

The kiwi may extend gains further toward 0.68 if the RBNZ reports an uptick in the inflation expectations in the third quarter. The New Zealand’s central bank is widely expected to hold interest rates at a record low of 1.75 percent and reiterate that the next move in interest rates could be up or down.

Also, the American dollar may pick up a bid, capping upside in the NZD/USD if Republicans retain a majority in both house and the Senate.

  • US midterm elections: Democratic incumbent in Florida takes lead in Senate race
  • US midterm elections: Tight Senate race in Florida as expected

NZD/USD Technical Levels

NZD/USD

Overview:
       Last Price:  0.6736
       Daily change:  66  pips
       Daily change:  0.990%
       Daily Open:  0.667
Trends:
       Daily SMA20:  0.656
       Daily SMA50:  0.6574
       Daily SMA100:  0.6662
       Daily SMA200:  0.6913
Levels:
       Daily High:  0.6684
       Daily Low:  0.6646
       Weekly High:  0.669
       Weekly Low:  0.6513
       Monthly High:  0.663
       Monthly Low:  0.6424
       Daily Fibonacci 38.2%:  0.667
       Daily Fibonacci 61.8%:  0.6661
       Daily Pivot Point S1:  0.6649
       Daily Pivot Point S2:  0.6628
       Daily Pivot Point S3:  0.6611
       Daily Pivot Point R1:  0.6688
       Daily Pivot Point R2:  0.6705
       Daily Pivot Point R3:  0.6726