Daily Analysis For NZD/USD  05-05-2023

Daily Analysis For NZD/USD 05-05-2023

NZD/USD Analysis
Economic Events and Scenario for NZD/USD
Economic Events : -
01:00(Japan) International Children's DayNoneJPY
01:00(Netherlands) Liberation DayNoneEUR
02:30(Australia) Home Loans MoMMediumAUD
02:30(Australia) Investment Lending for HomesMediumAUD
02:30(Australia) RBA Statement on Monetary PolicyMediumAUD
02:45(China) Caixin Composite PMILowCNY
02:45(China) Caixin Services PMIHighCNY
06:45(Switzerland) Unemployment RateHighCHF
07:00(Germany) Factory Orders MoMMediumEUR
07:30(Switzerland) Inflation Rate MoMLowCHF
07:30(Switzerland) Inflation Rate YoYMediumCHF
07:30(Switzerland) CPIHighCHF
07:45(France) Industrial Production MoMMediumEUR
07:45(France) Private Non Farm Payrolls QoQLowEUR
08:00(Austria) Wholesale Prices YoYLowEUR
08:00(Austria) Wholesale Prices MoMLowEUR
08:00(Austria) Balance of TradeLowEUR
08:00(Slovakia) Retail Sales YoYLowEUR
08:00(Slovakia) Retail Sales MoMLowEUR
08:00(Spain) Industrial Production YoYLowEUR
08:00(Switzerland) Foreign Exchange ReservesLowCHF
08:30(Euro Area) S&P Global Construction PMILowEUR
08:30(France) S&P Global Construction PMILowEUR
08:30(Germany) S&P Global Construction PMIMediumEUR
08:30(Italy) S&P Global Construction PMILowEUR
09:00(Italy) Retail Sales MoMHighEUR
09:00(Italy) Retail Sales YoYHighEUR
09:30(Slovenia) Balance of TradeLowEUR
09:30(United Kingdom) S&P Global/CIPS Construction PMIMediumGBP
10:00(France) New Car Registrations YoYLowEUR
10:00(Euro Area) Retail Sales YoYHighEUR
10:00(Euro Area) Retail Sales MoMHighEUR
11:00(Luxembourg) Inflation Rate YoYLowEUR
11:00(Luxembourg) Inflation Rate MoMLowEUR
11:00(Spain) Consumer ConfidenceMediumEUR
13:30(Canada) Average Hourly Wages YoYLowCAD
13:30(Canada) Full Time Employment ChgMediumCAD
13:30(Canada) Part Time Employment ChgMediumCAD
13:30(Canada) Participation RateMediumCAD
13:30(Canada) Employment ChangeHighCAD
13:30(Canada) Unemployment RateHighCAD
13:30(United States) Manufacturing PayrollsLowUSD
13:30(United States) Nonfarm Payrolls PrivateHighUSD
13:30(United States) Non Farm PayrollsHighUSD
13:30(United States) Unemployment RateHighUSD
13:30(United States) Government PayrollsLowUSD
13:30(United States) Participation RateMediumUSD
13:30(United States) Average Weekly HoursLowUSD
13:30(United States) Average Hourly Earnings MoMMediumUSD
13:30(United States) Average Hourly Earnings YoYMediumUSD
14:30(United States) Used Car Prices MoMLowUSD
14:30(United States) Used Car Prices YoYLowUSD
15:00(Ecuador) Inflation Rate YoYLowUSD
15:00(El Salvador) Inflation Rate YoYLowUSD
15:00(El Salvador) Inflation Rate MoMLowUSD
18:00(United States) Baker Hughes Oil Rig CountLowUSD
18:00(United States) Baker Hughes Total Rig CountLowUSD
20:00(United States) Consumer Credit ChangeLowUSD

Today's Scenario: - The NZD/USD pair recovered to around 0.6280 during the early Asian session, after dropping sharply following a failure to break the resistance level of 0.6300. The drop was due to a recovery in the US Dollar Index (DXY), which defended a crucial support level of 101.43.
Investors are now focusing on the United States Nonfarm Payrolls (NFP) data, which holds significant importance as upbeat figures could force the Federal Reserve (Fed) to reconsider its plan of pausing interest rate hikes from June. The Fed chair, Jerome Powell, confirmed in the monetary policy statement after a 25 basis point (bp) interest rate hike that further policy action will be more data-dependent. US labor market conditions have remained tight, making the NFP data even more critical.

Buy Scenario: - As of this morning, the NZD/USD pair has gained 0.14% to reach $0.62888. The session began on a bullish note, with the pair rising from its early low of $0.62770 to touch a high of $0.62894.
For the NZD/USD to continue its upward momentum, it must not drop below the pivot point of 0.6263 and instead target the First Major Resistance Level (R1) at 0.6318. If the pair manages to exceed the Thursday high of $0.62985, it could indicate a bullish session. However, this depends on the China services PMI supporting a pre-US session breakout.
If the pair experiences a breakout, it could test the Second Major Resistance Level (R2) at 0.6356, followed by the Third Major Resistance Level (R3) at 0.6411. Till we do not advise to buy NZD/USD.

Sell Scenario: - On the other hand, if the pair falls below the pivot point, it could lead to testing the First Major Support Level (S1) at 0.6225. Nevertheless, unless there is a sell-off fueled by the US Jobs Report, the NZD/USD is expected to avoid falling below $0.62 and the Second Major Support Level (S2) at 0.6170.
Finally, the Third Major Support Level (S3) for the NZD/USD pair is at 0.6132. Till we do not advise to sell NZD/USD.

Support and Resistance Level: -
S1 0.6225-R1 0.6318
S2 0.6170-R2 0.6356
S3 0.6132-R3 0.6411


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