NZD/USD: Bulls rescued by upbeat NZ credit card spending data?
- Remains depressed amid mixed markets.
- But finds support from better NZ credit card spending data.
- Focus on the NZ GDT price index.
Fresh bids emerged just ahead of the multi-month lows of 0.6780, allowing a tepid recovery in the NZD/USD pair back above 0.68 handle.
NZD/USD eyes NZ GDT price index
The latest leg higher in the spot can be mainly attributed to better-than-expected New Zealand credit card spending data, which offered some respite to the NZD bulls while renewed weakness seen around the US dollar versus its major rivals also aided the recovery in the Kiwi.
The major witnessed aggressive selling pressure and rapidly eroded nearly 30-pips, after it tracked its OZ counterpart, Aussie, lower. The AUD/USD pair was hit by the RBA minutes, which showed that the central bank was concerned over the “considerable uncertainty around wage pressures”.
From a broader perspective, the sentiment around the NZD/USD pair remains undermined on the back of doubts over the ability of the new NZ government to deliver on the reforms, especially with regard to the RBNZ reform act.
Markets now look forward to the Fonterra’s fortnightly dairy auction results for fresh incentives ahead of the US existing home sales data.
NZD/USD Levels to consider
The NZD breaks below 0.6800 (round number), below which 0.6780 (multi-month lows) and 0.6750 (psychological levels) are key near-term downside areas. On the topside, a test of 0.6816/20 (daily top & pivot) due on the cards, which could open doors towards 0.6859 (10-DMA).