EURNZD could provide volume for traders on Tuesday by releasing multiple data sets.
French inflation, German employment, and New Zealand employment are all released Tuesday for the pair.
EURNZD – Daily Chart
The euro versus New Zealand dollar exchange rate has been trading at support below the 1.68 level, and there is potential for a more significant drop to the 1.64 level.
Germany released disappointing data on Monday, with GDP coming in lower than analysts’ expectations. According to official figures, Europe’s largest economy shrank by 0.2% in the fourth quarter compared to the previous three months.
“Gross domestic product shrank for the first time since the first quarter of 2021, which was driven by a decline in consumer spending, which had supported the economy during the first three quarters of 2022,” the Federal Statistical Office said. The weakness followed GDP growth of 0.5% in the third quarter and 0.1% in the second quarter.
The statistics office warned in mid-January that the economy appeared to stagnate in the fourth quarter. Monday’s announcement prompted it to revise the full-year growth figure to 1.8% from 1.9%.
Traders will now consider the latest employment figures from Germany on Tuesday. Analysts expect to see 5,000 jobs added after last month’s -13,000 drop in employment. The unemployment rate is likely to stay at the 5.5% level.
New Zealand will also see the release of employment numbers later in the day. The Kiwi economy is expected to see employment gains drop to 0.3% from 1.3%.
Further data released on Tuesday will be French inflation, alongside eurozone and Italian GDP numbers. The euro is currently weak, and if the eurozone GDP follows Germany lower, the EURNZD has a 400 pip drop ahead.
