NZD/USD: bulls aiming for break of 0.70 the figure
- NZD/USD: bulls flexing muscles in minor correction, eye break to 0.70 handle.
- NZD/USD: technicals lean bearish longer term, RSI negative.
NZD/USD has popped higher, having a go at the previous highs set post the CPI data miss overnight. NZD/USD has Currently, NZD/USD is trading at 0.6964, up 0.07% on the day, having posted a daily high at 0.6973 and low at 0.6961.
Wall Street stocks lifted by low inflation, earnings and trade war optimism
NZD/USD is in a minor correction of downtrend from the 0.74 downtrend (mid-April) but has been capped by the descending 21-4hr SMA. The rally after the CPI data disappointment has been 74 pips so far and the Business sentiment PMI was strong at 58.9 vs 53.1 prior, adding to the upside.
NZD will continue to gyrate
"With RBNZ interpreted on the dovish side, NZD may struggle to gain traction to the topside over the short term. NZD will continue to gyrate with risk sentiment and we continue to prefer to sell spikes," analysts at ANZ argued.
NZD/USD levels
Support is located at 0.6880 and resistance at 0.7080. The NZD/USD has dropped below the key 200-month moving average support at 0.6980 and technicals stay bearish with RSIs biased to the downside longer term on the daily and weekly sticks.