NZD/USD: stable around poor NZ data, eyes for R1 pivot at 0.69 the figure
- NZ building permits for September ignored.
- US yields and US data in focus.
- Kiwi eyes R1 pivot at 0.69 the figure.
Currently, NZD/USD is trading at 0.6875, down -0.02% on the day, having posted a daily high at 0.6879 and low at 0.6871.
NZD/USD was moving with a handful of pips to the downside around the latest news from the NZ economy where NZ building permits for September arriving at -2.3% m/m vs prior +10.2%.
Meanwhile, the greenback is out of vogue at the start of this week with US politics the driving force and sentiment for what Powell means to the financial markets if he were to be confirmed as the chair to the Fed, replacing Yellen on the 3rd Feb 2018.
The FBI case hit the front pages yet again in respect to fishing for information over the alleged Trump / Russian scandal. The FBI charged former campaign staff, George Papadopoulos, who the FBI said "falsely described his interactions with a certain foreign contact who discussed 'dirt' related to emails" concerning Democratic presidential candidate Hillary Clinton.
"Kiwi is ultimately in consolidation mode right now, and that is something that is likely to persist for a while yet. However, it is ultimately a week where US developments will hold sway."
Key data releases for the greenback this week:
- ADP Employment Change
- ISM Manufacturing
- FOMC Rate Decision (FOMC: No change in policy is expected - BBH) (Upper Bound) FOMC Rate Decision (Lower Bound) Initial Jobless Claims
- Change in Nonfarm payrolls Unemployment Rate
- Average hourly Earnings MoM Average Weekly hours
- ISM Non-Manufacturing
NZD/USD levels
Bulls got through the 100 SMA on the hourly sticks at 0.6866, a key milestone in the short term recovery at least with the closest support at where the FXStreet Technical Confluences Indicator shows where the 23.6% Fibo level was located, 0.6864. Further upside opens the pivot R1 at 0.6899. However, on a correction/reversal, the bulls have a lot of legwork to do to get anywhere near out of the bearish territory and only at 0.7080 and 0.7120 levels might there be any conviction in a reversal.