- New Zealand Dollar surged higher against the US dollar, and traded close to the 0.6680 area.
- There was a contraction triangle on the hourly chart, which was broken to pave the way for more gains.
- In the US, the Employment Change released by the Automatic Data Processing, Inc. posted a solid increase of 217K, compared with the forecast of 190K in November 2015.
- US MBA Mortgage Applications released by the Mortgage Bankers Association posted a decrease of 0.2%.
The NZDUSD pair blasted towards the 0.6680 resistance area where it found sellers and started a downside correction. The pair is currently trading near the 23.6% Fib retracement level of the last leg from the 0.6514 low to 0.6687 high.
A break below the stated fib level may take the NZDUSD pair towards the 100 hourly simple moving average.
On the upside, a break above 0.6680-90 is needed for more gains.
US ADP Employment Change
Today, the US Employment Change, which is a measure of the change in the number of employed people in the US was released by the Automatic Data Processing, Inc. The market was expecting an increase of 190K in November 2015. However, the outcome was above the forecast, as there was a rise of 217K.
The report stated that the “Payrolls for businesses with 49 or fewer employees increased by 81,000 jobs in November, down from October’s 91,000. Employment among companies with 50-499 employees increased by 62,000 jobs, a bit less than the 67,000 added last month. Employment at large companies – those with 500 or more employees –came in double the upwardly revised 37,000 jobs added in October at 74,000 for the month”.
The NZDUSD may correct lower from the current levels, but may find support near the 100 hourly simple moving average.