The NZD/USD is in the red today as traders focus on the elections in the United States.
First results show that the race between Joe Biden and Donald Trump will be close.
New Zealand also released better than expected figures for jobs.
The NZD/USD pair has dropped more than 0.50% as traders respond to the flowing results from the United States and employment numbers from New Zealand. The pair is trading at 0.6655, which is below the overnight high of 0.6745.
NZD/USD falls as traders watch the U.S. election results
Unemployment rate in New Zealand increases
New Zealand is one of the best countries in the fight against the coronavirus pandemic. The country, which has a population of more than 5 million people, recorded only 1,970 cases and 25 deaths. This is impressive when you consider that its neighbor Australia had more than 27,000 cases.
But like all countries, New Zealand is affected by the pandemic, especially in the travel and hospitality sector. This is because the pandemic has brought the lucrative tourism sector to a standstill.
Today, employment data from New Zealand shows that the number of unemployed in the country has risen by 37,000 to 151,000. This was an increase of 32.5% over the second quarter and is evidence of the difficult economic situation. At the same time, there were 22,000 fewer people in employment this quarter.
Overall, the key unemployment rate rose from 4.0% to 5.3%, the highest quarterly increase since records began. This increase was better than the 5.4% that analysts had expected. It is also significantly better than the US rate of 7.7% and the European rate of 7.6%. In a statement the statistics office said:
“The low unemployment rate of 4.0 percent in the last quarter is partly explained by the inability of people to ‘actively seek work’ and be available for work during the national lockdown that was in place for much of the quarter.
Meanwhile, the underutilization rate rose to 13.2%, compared to 12.0% in the second quarter. This figure includes the number of unemployed, underemployed and potential workers.
Regardless, the NZD/USD is also reacting to the flowing results of the U.S. presidential election. So far, President Trump has won 107 votes, while Biden received 131 votes. However, the final vote could change if more colleges announce their results.
NZD/USD technical outlook
Technical Table NZD/USD
The daily chart shows that the NZD/USD price is in the red territory today. However, the price remains in the ascending channel, which is shown in blue. It is also above the 25-day and 15-day exponential moving averages and above the 78.6% Fibonacci retracement level. Therefore, the pair is likely to move in both directions at this time due to the American elections. As such, the key support and resistance levels will be 0.6513 and 0.6761 respectively.