New Zealand Q3 Employment Surprise to the Downside – Reaction

Q3 employment figures drop 0.4% amidst expectations for a 0.3%, bringing Unemployment Rate above 7% for the 1st time since 2010.

5 Min Chart

4 Hourly Chart

Price went down sharply following the news, breaking away from the 0.8250 – 0.8260 5 min consolidation range, and more importantly taking out support around 0.8180. If price maintain below the 0.8180 level, we could see range between 0.8100 to now back in focus.

Daily Chart

Zooming out further, we can see that the current price action since Mid Sep looks similar to the PA from Mar – April. Bears would hope to break 0.808 which will open up 0.748 as a potential final short targets. In the interim, significant supports could still be found every 100 pips around 0.798, 0.788 and also 0.778. 0.828-0.838 act as resistance zone as seen back in Feb '12.

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