- NZD/USD extends losses for the fifth straight day.
- US Dollar Index stays virtually unchanged above 96.
- Coming up: Q4 inflation report from New Zealand on Wednesday.
The NZD/USD started the week under pressure after recording losses every day of the previous week. Following a slide to a fresh 2-week low of 0.6713 earlier in the day, the pair recovered a portion of its daily losses and was last seen trading at 0.6730, where it was down 0.17% on a daily basis.
The data from China in the Asian session showed that the industrial production grew more than expected in 2018 with the annual rate rising to 5.7% from 5.4%. However, other data from China revealed that the GDP expanded by 6.4% on a yearly basis in Q4 to post its lowest reading in nearly 30 years and offset any potential positive impact of the industrial production data on the kiwi, which is one of the most sensitive currencies to China’s economic health.
In the meantime, following last week’s modest rally, the greenback stays relatively calm on Monday with bond markets and Wall Street enjoying the MLK Day holiday in the U.S. At the moment, the DXY was virtually unchanged on the day at 96.35.
Tomorrow’s macroeconomic calendar won’t feature any significant data and the next significant catalyst for the pair will be Wednesday’s inflation report from New Zealand, which is expected to show no change in the CPI on a quarterly basis in Q4.
Key technical levels
The initial support for the pair aligns at 0.6715 (daily low) ahead of 0.6670 (Jan. 4 low) and 0.6615 (Jan. 3 low). On the upside, resistances are located at 0.6740 (daily high), 0.6790 (50-DMA) and 0.6850 (Jan. 15 high).
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