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NZD/USD: Recovery from post-CPI lows falters

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 20, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The New Zealand dollar tries to recover lost footing versus its American counterpart in the mid-Asian trades, now lifting NZD/USD from fresh multi-month lows towards 0.64 handle.

    NZD/USD at lowest levels since Sept 2015

    Currently, the NZD/USD pair drops -0.53% to 0.6379, recovering slightly from new four-month lows struck at 0.6367 at Tokyo open. The NZD bears remain relentless and keep the NZD/USD pair submerged into the red after the awful NZ CPI print reinforced RBNZ rate cut bets.

    Consumer prices in New Zealand fell at the fastest quarterly pace in seven years in Q4, with the CPI declining 0.5% in the last quarter of 2015, against a drop of 0.2% estimated.

    Moreover, falling dairy prices combined with fresh sell-off in oil and Asian equities also collaborated to the downside in the bird. Meanwhile, markets will continue to digest the CPI shocker ahead of the inflation figures from the US.

    NZD/USD Levels to consider

    To the upside, the next resistance is located at 0.6400 (round number), above which it could extend gains to 0.6453 (1h 50 & 100-SMA) levels. To the downside immediate support might be located at 0.6300/0.6288 (Sept 2015 levels).
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