NZDUSD follows American markets lower
Gary Christie September 3, 2020 9:51 PM
Despite negative pressure, the NZDUSD breakout remains in play : Chart
It was an ugly day on Wall Street Thursday with the Dow Jones Industrial Average falling 807.77pts (-2.78%) to 28292.73. S&P 500 declined 125.78pts (-3.51%) to 3455.06 and the Nasdaq 100 dropped 649.17pts (-5.23%) to 11771.37.
The US Dollar was bullish against most of its major pairs on Thursday with the exception of the CHF and JPY. On the US economic data front, Initial Jobless Claims fell to 881K for the week ending August 29th (950K expected), from a revised 1,011K in the previous week. Continuing Claims dropped to 13,254K for the week ending August 22nd (14,000K expected), from a revised 14,492K in the week before. The Trade Deficit spiked to 63.6 billion dollars on month in July (58.0 billion dollars expected), from a revised 53.5 billion dollars in June, a level last seen in 2008.
On Friday, Change in Nonfarm Payrolls for August are expected to fall to 1,350K on month, from 1,763K in July. Finally, the Unemployment Rate for August is expected to decline to 9.8% on month, from 10.2% in July.
The Euro was bullish against most of its major pairs with the exception of the CHF and JPY. In Europe, research firm Markit has published final readings of August Services PMI for the Eurozone at 50.5 (vs 50.1 expected), for Germany at 52.5 (vs 50.8 expected), for France at 51.5 (vs 51.9 expected) and for the U.K. at (vs 60.1 expected). The European Commission has reported July retail sales at -1.3% (vs +1.0% on month expected).
The Australian dollar was bearish against most of its major pairs with the exception of the NZD.
The New Zealand Dollar dropped almost 1% against the U.S. Dollar in Thursdays trading. Despite the decline, the pair remains above prior declining trendline resistance. A bullish crossover has been confirmed after the 20-day moving average crossed above the 50 day MA. Momentum remains bullish with the indicator above its median level. Key support rests at 10.6485. A break above 0.6795 resistance would pave the way towards 0.694 resistance target.
Source: GAIN Capital, TradingView