- NZD/USD is consolidated in Asia, oscillating around S1 located at 0.6856 after travelling from yesterday’s Asian highs located at 0.6900.
- The bird is testing the 200-D SMA located at 0.6851.
NZD/USD was subdued due to the announcement regarding an emissions trading scheme, as well as expectations of a moderation in GDP data next week, according to analysts at Westpac.
- Breaking: UK PM May survives the no-confidence vote, Pound eases
Meanwhile, analysts at ANZ argued that with the bird confined to its recent ranges, ‘despite the better tone to market sentiment of late, it highlights that it is somewhat off the radar right now and likely to struggle to push meaningfully higher at the present time.”
However, the majority of the focus was paid to European politics with optimism over Italy’s budget and markets pricing in UK PM May surviving the leadership vote with sterling picking up the most of the flow.
As for data, the US CPI came in as expected, with core inflation nudging up 0.1%pt to 2.2% y/y. “The Fed is expected to downgrade its inflation forecasts next week, with increased speculation it will pause the hiking cycle in 2019,” analysts at Westpac argued.
NZD/USD levels
- Support 0.6820
- Resistance 0.6980
The bird is testing the 200-D SMA located at 0.6851 and a break below risks a slide to the 38.2% retracement Fibo (at 0.6810). On the downside, 0.6825 was the recent low ahead of S3 at 0.6812. On a refocus of the upside, the bird can head towards the 61.8% Fibo at 0.7048.
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