NZD/USD peeps above 200-hour MA despite the drop in New Zealand consumer spending

• The NZD/USD has moved back above the 200-hour MA at press time.
• Consumer spending in New Zealand, as represented by credit card spending data, dropped in October. So far, however, the dismal reading has not had any impact on the NZD.
• Focus on the US treasury yields.

The NZD/USD pair is eyeing a convincing move back above the 200-hour simple moving average (SMA) of 0.6791 even though the data released in New Zealand showed a drop in consumer spending.

New Zealand credit card spending fell 0.1 percent month-on-month in October, following a 0.8 percent rise in September, the official data released a few minutes before press time showed.

Indeed, the decline in spending is bad news. The NZD, however, is showing resilience, possibly due to oversold conditions in the hourly chart and risk-on in the equities. At press time, the S&P 500 futures are reporting a 0.27 percent gain.

Looking forward, the focus will be on the sentiment in the equity market and the action in Treasury yields. The US dollar sell-off will likely gather pace if the 10-year treasury yield sees a double top breakdown.