AUD/NZD: extending the offer post strong NZ jobs

AUD/NZD has formed a strong downtrend on the back of promising data from the NZ economy and related business.

First, overnight, we had the New Zealand GDT price index at 12.7% vs 6.6% prior. This was the set up for the rally in today's shift on the back of stunning jobs data while in the background, the foundations have been built on a weaker DXY and a dovish outlook for the Fed for the remained of this year. Meanwhile, a dovish tone from the RBA after the recent rate cut has been developing weighing on the Aussie. However, a little stability perhaps comes in today with Australia's AAA rating affirmed, outlook remains stable - Moody's

Today, the cross dropped even further on the NZ Q2 employment change came in at a whopping 2.4% q/q vs 0.6% expected with a drop of 0.2% in the unemployment number and a higher participation rate of 69.7% vs 68.8%.

AUD/NZD: What price levels and patterns have to be considered?

With spot trading at 1.0574, we can see next resistance ahead at 1.0581 (Daily High), 1.0594 (Daily Classic S2), 1.0594 (Hourly 20 EMA), 1.0611 (Daily Classic S1) and 1.0623 (Daily 20 SMA). Support below can be found at 1.0569 (Daily Open), 1.0568 (Weekly Low), 1.0568 (Yesterday's Low), 1.0562 (Daily Classic S3) and 1.0539 (Weekly Classic S1). Looking to candlestick patterns, we can see a Dark Cloud Cover formation on the 1-hour chart and a Hammer formation on the 4-hour chart.