NZD/USD: What to Expect After Move Above $0.7050

NZD/USD has extended gains from the past two sessions after the better-than-expected New Zealand jobs data. Earlier on Wednesday, the country’s statistics office indicated that the number of employed people rose by 1.0% in the year’s second quarter. Analysts had expected a reading of 0.7% compared to 0.6% in the first quarter.

Besides, the country’s unemployment rate dropped to 4.0% in Q2, up from 4.6% in the previous quarter. The figure beat the analysts’ estimates of 4.5%. Notably, New Zealand has staged a rather strong economic recovery. In the coming weeks, the focus will be on RBNZ’s rate hike. Later in the day, NZD/USD will also be reacting to US ADP job data.

NZDUSD technical outlook

NZD/USD has been on an uptrend since the beginning of August. After dropping from an intraday high of 0.7021 to 0.6959 on Friday, the currency has been on a rebound. Over the past three sessions, it has surged by about 1.47%.

At the time of writing, NZD/USD was up by 0.6% at 0.7060. On a two-hour chart, it is trading above the 25 and 50-day EMAs with an RSI of 71. In the near term, it is likely to ease around 0.7500. Subsequently, the entry of more buyers into the market could push it higher to its next target at 0.7100. On the flip side, a move below the prior resistance-turn-support level of 0.7045 will probably place the support along the 50-day EMA at the psychological 0.7000.