New Zealand Dollar pressured by strong US labor-market data

• US JOLTS Job Openings jumped to 7.618 million in April, the highest level since May 2024.
• Stronger US labor-market data supported the US Dollar and reduced expectations for Fed rate cuts.
• Markets remain mainly driven by US labor market figures.

The NZD/USD pair trades near the 0.5930 region on Wednesday as the United States (US) Dollar (USD) strengthens following upbeat labor-market data, while investors remain cautious ahead of upcoming economic releases from New Zealand. At the time of writing, the pair declines around 0.15%.

The latest Job Openings and Labor Turnover Survey (JOLTS) showed US job openings surged to 7.618 million in April from a revised 6.887 million in March, well above market expectations of 6.88 million. The reading marked the highest level since May 2024 and reinforced confidence in the resilience of the US labor market.

With no major New Zealand data released during the session, NZD/USD remains mainly driven by US labor-market figures, Treasury yields, and broader demand for the Greenback.

Short-term technical analysis:

On the four-hour chart, NZD/USD trades at 0.5923, maintaining a capped tone as it holds above the 100-period Simple Moving Average (SMA) at 0.5896 but remains below the 20-period SMA at 0.5950 and nearby horizontal barriers. Immediate pressure is reinforced by a fading Relative Strength Index (RSI) around 47, which hints that bullish momentum has cooled after the recent rejection from overbought territory.

On the topside, initial resistance is aligned at 0.5926, with a stronger barrier at 0.5937 and the 20-period SMA at 0.5950 forming a broader supply zone. On the downside, first support is seen at 0.5922, followed by 0.5918; a break there would expose the 100-period SMA support near 0.5896.

(The technical analysis of this story was written with the help of an AI tool.)