NZD/USD takes off on the Kiwi jobs data, targets key 38.2% fibo level/200H SMA

• NZ Q3 unemployment rate impresses at 4.6% vs exp 4.7%.
• NZD/USD rallies over 50 pips on the jobs data.
• Eyes will quickly turn back to the US events and political annoucements.

 Yesterday’s business confidence figures gave the market another excuse to pressure kiwi lower, but today's jobs data impressed the market and the bird took flight by 55 pips on the knee jerk. Currently, NZD/USD is trading at 0.6891, up 0.66% on the day, having posted a daily high at 0.6894 and low at 0.6844.

• NZ Q3 unemployment rate 4.6% (exp 4.7%) 
• 15:48:33
• New Zealand Participation Rate Q3: 71.1% (exp 70.2%; R prev 70.1%)   
• -Average Hourly Earnings (Q/Q) Q3: 1.2% (exp 1.1%; prev 0.8%) 

What are the key risk factors ahead? - ANZ

Analysts at Westpac's outlook for NZD/USD

• NZD/USD 1 day: The pause in the US dollar’s two-month old rise should allow the AUD to take a breather between 0.6800 and 0.6900. Today’s labour data poses major event risk, the noisy series often surprising in both directions.
• NZD/USD 1-3 month:  If the RBNZ remains firmly on hold, as we expect, and the US dollar rises on delivery of a Fed interest rate rise in December, then NZD/USD should fall below 0.68 by year end. (25 Oct)

NZD/USD levels

The bulls are back through the 100 SMA on the hourly sticks at 0.6857, a key milestone in the short term recovery at least with the closest support at where the FXStreet Technical Confluences Indicator shows where the 23.6% Fibo level was located, 0.6845.  Further upside opens the pivot R1 at 0.6899 and 38.2% fibo and the 200 hourly sma. However, on a full-on correction/reversal, the bulls have a lot of legwork to do to get anywhere near out of the bearish territory and only at 0.7080 and 0.7120 levels might there be any conviction in a reversal.