New Zealand Dollar surges broadly today, as strong job growth data together with record annual wages growth basically seal the deal for another RBNZ rate hike on May 24.
Technically, NZD/USD’s fall from 0.6381 should have completed at 0.6110 already, and further rise is now in favor back towards this resistance. The favored case is that current rise is merely the third leg of the sideway pattern from 0.6083. Outlook remains bearish as long as 0.6381 resistance holds, for resumption of the corrective decline from 0.6537 at a later stage. Break of 0.6160 minor support should bring deeper fall through 0.6083.
Nevertheless, firm break of 0.6381 will argue that the correction from 0.6537 has completed, and the whole rally from 0.5511 might then be ready to resume through 0.6537 high.