16 Jul 2013
NZD/USD pares gains back to 0.7800 after NZD CPI
FXstreet.com (New York) - The NZD/USD foreign exchange rate fell off the 0.7824 handle (session high) during Asian trading Tuesday, following weak NZ data in recent moments.
In New Zealand, the Consumer Price Index (YoY) came in at +0.7% in Q2, missing expectations of +0.8%. Moreover, Consumer Price Index (QoQ) grew at +0.2% in Q2, relative to estimates of +0.3%.
NZD/USD strategic bias
According to Jim Langlands at FX Charts, “Any trading towards the 0.7850 region may be a level at which we should be looking to get set for the next leg lower, possibly to eventually take out 0.7680 for an accelerated decline towards 0.7500.”
Presently, the NZD/USD is now navigating the area of 0.9493, recording an advance of +0.43% above it’s opening still. According to Mike Jones, an analyst at BNZ, “We hold a negative NZD/USD bias for the day. Resistance at 0.7885 should continue to cap near-term gains, while dips are expected to be limited to 0.7760.”
In terms of the technical levels, supportive measures will trigger should the pair reach 0.7795 (200-day SMA), ahead of 0.7782 (July 10 low), 0.7769 (July 9 low). On the ascension, the NZD/USD will face resistance at 0.7827 (July 12 low), 0.7856 July 4 high), and 0.7875 (July 12 high).
In New Zealand, the Consumer Price Index (YoY) came in at +0.7% in Q2, missing expectations of +0.8%. Moreover, Consumer Price Index (QoQ) grew at +0.2% in Q2, relative to estimates of +0.3%.
NZD/USD strategic bias
According to Jim Langlands at FX Charts, “Any trading towards the 0.7850 region may be a level at which we should be looking to get set for the next leg lower, possibly to eventually take out 0.7680 for an accelerated decline towards 0.7500.”
Presently, the NZD/USD is now navigating the area of 0.9493, recording an advance of +0.43% above it’s opening still. According to Mike Jones, an analyst at BNZ, “We hold a negative NZD/USD bias for the day. Resistance at 0.7885 should continue to cap near-term gains, while dips are expected to be limited to 0.7760.”
In terms of the technical levels, supportive measures will trigger should the pair reach 0.7795 (200-day SMA), ahead of 0.7782 (July 10 low), 0.7769 (July 9 low). On the ascension, the NZD/USD will face resistance at 0.7827 (July 12 low), 0.7856 July 4 high), and 0.7875 (July 12 high).