NZD the overnight target after jobs miss
Overnight, it was the turn of the NZD to take a hit after the employment report for Q4 was a rise in the unemployment rate from 3.9% in Q3 to 4.3% - more than the 4.1% which was expected. Naturally, with the risk related currencies already under pressure (despite the recovery in equities), sellers piled in and we saw a 1 cent drop from the mid 0.6800's which is currently trying to stabilise ahead of the lows seen just under 0.6750.
For NZ, the overwhelming risks ahead remain with external factors and trade. From a domestic point of view, the domestic finances remain in good shape, and the unemployment rate still compares favourably with the rest of the world, with Australian unemployment currently at 5%.
The next support level for NZD/USD is now seen at the 0.6712 mark, which represents the low from 22 Jan, though if this gives way, then the next downside target lies at 0.6655. This level is relatively strong, as trend-line support from the 0.6427 lows seen last Oct also cuts in at this level.
In the current climate, however, it is hard to rely on these support points, as the risk mood is on unstable ground with global risk concerns hurting the NZD and AUD specifically.