The NZ Dollar has suspended its strengthening against the US Dollar. It was supported by the absence of negative news. According to Mike Jones, a strategist from the Bank of New Zealand, positive background favored capital markets, thus making investors turn to riskier assets, including the NZ Dollar.
The recent labor market report for Q2 2012 came out positive, thus providing support to the new Zealand Dollar. Paychecks boosted by 0.5% (q/q) and 2.1% (y/y). Hourly earnings increased by 0.2% (q/q) and 2.9% (y/y).
As for the prospects of the NZ Dollar, traders expect the RBNZ reserve the interest rates, which will support the NZD exchange rate, thus pushing it up.
According to , the New Zealand Dollar currently retracing a bit against the US Dollar. The experts report that NZDUSD has finished forming wave А(С)/С inside a bigger-scale upswing represented by wave А/В of level Weekly. At this point, the currency pair is forming wave В(С ).
A further downswing will take place if the price breaks below 0.8118. the closest levels of support are located at 0.8074 and around the bottom of the MF sloping channel. A break above 0.8222 will resume the bullish move represented by wave А(С)/С. If this is the case, the price may encounter resistance around 0.8229 and 0.8309.
