Global macro overview for 03/02/2016:
The New Zealand employment data were released overnight and the most important aspects of the data were better than analysts had expected. The unemployment rate has sharply decreased to 5.3% whereas the market expectations were way worse: an increase to 6.1% from 6,0% a month before. This was the lowest jobless rate since March 2009. Moreover, the employment change posted a gain of 0.9%, edging above the estimate of 0.8%. It is worth noting that the New Zealand economy had been badly hurt by the slowdown in China's economy (the New Zealand biggest trading partner), when GDP, PMI, and other important figures from China painted a rather grim picture of future of the world's second biggest economy. In conclusion, we can remind the RBNZ Governor Graeme Wheeler's remarks from his yesterday's speech regarding an outlook for the New Zealand further economic developement: "if the concerns deepen around the global economy growth prospects and its effect on New Zealand, further policy easing may be needed over the coming year".
Let's now take a look at the daily technical chart of the NZD/USD pair. We can clearly see the strong recovery in this market as ts had broken above 50% Fibo level and now it is approaching the 61%Fibo level at 0.6678. In that case, the level of 0.6579 will be an important technical support and traders should keep thier eye on the next technical resistance just above the 61%Fibo mark at the level of 0.6681. If there is no signs of a reversal from this level, then bulls might try to test the local swing high at the level of 0.6896.