FXStreet (Cocoa) – The New Zealand Dollar is adding losses against the US Dollar following the US initial jobless claims data. Now, the NZD/USD collects a 120 pips collapse from 0.7265 traded in the earlier European session to price at lows since May 2011 at 0.7140.
US added 282K initial jobless claims in the last week, above expectations. But data remains at multi-year lows and adds reasons to believe that the labor market is improving in the United States. The jobless claims chart shows that initial jobless claims remain below the 300K mark for the 12th week in a row.
NZD/USD after Initial Jobless claims
Currently, NZD/USD is trading at 0.7155, down 1.53% on the day, having posted a daily high at 0.7274 and low at 0.7144. NZD/USD spot is in oversold territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is slightly bearish.
NZD/USD Forecast and Levels
According to Imre Speizer, analyst at Westpac Banking Corporation, the bank expects the “NZD/USD to continue its downward trend during the next few months, targeting 0.70.”
As for the short term, if the pair manages to extend losses beyond 0.7140, next supports are at 0.7100 and 0.7080. To the upside, resistances are now at 0.7170, 0.7200 and 0.7210.
(Market News Provided by FXstreet)