- NZD/USD struggles to hold form after its last leg up on the back of the retail sales beat yesterday.
- The bird has moved into a sideways chop and has been resisted by a support line stemming all the way back to July 23rd and 27th lows at 0.6720.
Currently, NZD/USD oscillates at 0.6694 and remains broadly steady into Asia today. NZD/USD has picked up a bid riding the dollar weakness of late, for there has been little, other than that retail sales beat yesterday, on the domestic front to drive the price higher. Sentiment has turned more positive this week and the commodity complex has picked up on the beat. The CRB index is now on the 191 handle and well out of the neckline. The FOMC minutes were a non-event really and eyes instead turn to Powell’s delivery on Friday at the Jackson Hole.
“While it was a broadly steady night after a pop higher following yesterday’s NZ retail sales figures, the USD is finding a few more headwinds right here that do caution about expecting kiwi to head lower in a hurry again. We retain a bearish medium-term view, but see a lack of catalysts in the near term to drive it.”
Analysts at ANZ explained.
NZD/USD levels
NZD/USD remains better bid on the weekly sticks but the daily doji gives rise to expectations of a breather in the five-day rally. Support is located down at 0.6650 while resistance is at 0.6720. There is the possibility of a stretch towards 0.6860 if 21-D SMA at 0.6698 can be cleared with subsequent daily closes. This guards territory towards 0.6920 as the June high. The 200-month moving average resistance is at 0.7019. However, on the downside, a break back below the 10-D SMA at 0.6615 opens 0.6510/50 guarding a run to the 0.6470s.
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