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NZD/USD: directionless at critical resistance

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 4, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    NZD/USD is currently trading mixed with a bearish start, opening slightly offered below the psychological 0.69 handle.

    US NFP reflected manufacturing weakness, consumer strength - Wells Fargo

    The greenback was also somewhat disordered across the board to tend the quarter last week, running up to the nonfarm payrolls investors were nervous on the possible outcomes given the uncertainty over the US economy's recovery on the back of Yellen and various Fed speakers of late. The data arrived and was a relief in many respect, coming out solid yet again reflecting consumer strength, but underlining the weakness in the manufacturing sector still.

    However, the ISM manufacturing was a positive surprise thereafter and James Smith, Economist at ING explains that the increase in the ISM manufacturing index, coupled with the labor report “will give the FOMC some confidence about the direction of the economy”.

    Meanwhile, for the Kiwi, we have little to go on this week apart from GDT Price Index on Tuesday after the NZIER Business Confidence (QoQ) (Q1) released ahead of the RBA interest rate decision tomorrow.

    NZD/USD levels

    NZD/USD was a strong performer towards the end of last month. The bird rallied from 0.6668 the low on 27th March to recent highs of 0.6966. Currently, the price is below the 20 4hr sma at 0.6906, but remains in bullish territory within the ascending daily channel from 0.6347 Jan lows and above the double daily top levels. The pivot is located at 0.6894 and RSI (14) is also neutral at 45 on the hourly offering no clear direction strength to start the week.
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