Technical Analysis for NZD/USD: May 10, 2016
The NZD/USD is showing a shaky flight as the USD rallies despite muted nonfarm payrolls released last week. China’s modest CPI and PPI lifted the bird slightly, although not enough to push the kiwi above 0.6780, its intraday high.
Traders are going short on the NZD with little impetus coming this week. The Reserve Bank of New Zealand will publish its biannual Financial Stability Report later today followed by Governor Graeme Wheeler’s remarks.
We will scout for foreshadowing in Wheeler’s speech that may indicate the next route of the central bank’s interest rate. Retail sales will follow on Thursday.
The pair is now at 0.6741 and is continuing to decline. The MACD indicator is in a negative location.
The first support occurs at 0.6723 and 0.6689 subsequently while the first resistance occurs at 0.6809 and 0.6843 subsequently.
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