News Column

NZD/USD Breaks Out Ahead of RBNZ- EUR/NZD at Risk for Lower Low

June 6, 2014

David Song

Talking Points:

- USDOLLAR Rebounds From 10,470 Pivot (Former Resistance) Following NFPs

- USD/JPY Holds Below May High (103.01) Ahead of BoJ Meeting

- NZD/USD Breaks Out of Descending Channel Ahead of RBNZ Meeting



The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) pared the overnight decline to 10,466 as the Non-Farm Payrolls (NFP) report continued to cast an improved outlook for the U.S. labor market, but the greenback remains at risk of facing a further decline ahead of the Fed's June 18 meeting as the reserve currency continues to carve a series of lower-highs.



Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10494.95

10503.55

10466.42

0.13

120.16%



Despite the pickup in wage growth, the positive development are likely to have a limited impact in spurring a meaningful shift in the policy outlook amid the ongoing slack in the real economy, and it seems as though we will get more of the same this month as Fed Chair Janet Yellen remains reluctant to normalize monetary policy.



With that said, we will continue to look for opportunities to 'selling bounces' in the greenback, and the USDOLLAR could be well on its way to fresh 2014 lows as there appears to be a bearish momentum taking shape in the Relative Strength Index (RSI).



NZD/USD Breaks Out Ahead of RBNZ- EUR/NZD at Risk for Lower Low





Read More:

Price & Time: Important Turn Window Coming Up For Gold

Breakout or Break Down? NZD/USD Eyes Critical Resistance Pre-NFPs



USDOLLAR Daily



NZD/USD Breaks Out Ahead of RBNZ- EUR/NZD at Risk for Lower Low

  • At Risk for Lower-Low as Bearish RSI Momentum Takes Shape
  • Interim Resistance: 10,602 (38.2 retracement) to 10,615 (78.6 expansion)
  • Interim Support: 10,354 to 10,375 (50.0 retracement)



    Release

    GMT

    Expected

    Actual

    Change in Non-Farm Payrolls (MAY)

    12:30

    215K

    217K

    Unemployment Rate (MAY)

    12:30

    6.4%

    6.3%

    Labor Force Participation Rate (MAY)

    12:30



    62.8%

    Change in Private Payrolls (MAY)

    12:30

    210K

    216K

    Change in Manufacturing Payrolls (MAY)

    12:30

    10K

    10K

    Two-Month Payroll Net Revision (MAY)

    12:30

    --

    -6K

    Change in Household Employment (MAY)

    12:30

    --

    145K

    Underemployment Rate (MAY)

    12:30

    --

    12.2%

    Average Hourly Earnings (MoM) (MAY)

    12:30

    0.2%

    0.2%

    Average Hourly Earnings (YoY) (MAY)

    12:30

    2.0%

    2.1%

    Average Weekly Hours (MAY)

    12:30

    34.5

    34.5

    Consumer Credit (APR)

    19:00

    $15.000B




















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    Source: DailyFx


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