- Lack of major positives drove global traders to concentrate more on the USD rise.
- Australian inflation data will be watched closely due to the absence of catalysts at home.
Despite recovering nearly 30 pips from the sixteen week low, the NZD/USD pair is still struggling around 0.6655, the least since January 03, at the start of the Asian session on Wednesday.
The Kiwi pair dropped yesterday as the return of global traders brought across the board strength by the US Dollar (USD) as lack of major details and eco-political uncertainties surrounding rest of the globe pushed investors to the greenback.
Adding to the USD rise could be better than expected new home sales data and a record high daily closing by leading equity indices like S&P500.
There were few drivers at home amid prevalent speculations concerning a break in China’s monetary stimulus.
Moving on, absence of major catalysts from New Zealand could continue disturbing the Kiwi traders but inflation data from Australia, the largest customer, might offer some direction to the moves.
Australian is scheduled to publish first quarter (Q1) consumer price index (CPI) and trimmed mean CPI details for the year 2019. The CPI (QoQ) could soften to 0.2% from 0.5% whereas trimmed mean CPI, RBA’s preferred version of inflation, may remain unchanged on a quarterly basis to 0.4%.
NZD/USD Technical Analysis
Late-2018 stops around 0.6630, followed by 0.6610 and January lows near 0.6585 are likely nearby supports, a break of which could flash 0.6570 and 0.6550 on the chart.
On the upside, the pair needs to cross 0.6670 and 0.6710 resistances to regain its stand above the 200-day simple moving average (SMA) level of 0.6730.
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