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NZD/USD reverses post US CPI sell-oof

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 19, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    NZD/USD is currently trading at 0.6613 with a high of 0.6649 and a low of 0.6565.

    NZD/USD has been a bit of a side show for the week while attention turned to the Aussie on minutes and jobs data. The Kiwi, however, has shown a little activity today, first in a sell-ff post the US CPI's and then a full reversal back on to the 0.66 handle and 100 sma on the hourly sticks.

    "US CPI for January came in a little stronger than had been expected, with the headline rate unchanged on the month, and the core rate rising by 0.3%mom./ Headline inflation in January is now double that in December at 1.4%YoY, with the core rate now at 2.2% (up from 2.1%)," explained analysts at ING who reviewed the data here.

    Next week, we have the trade data for NZ. analysts at TD Securities explained in a preview that January is a poor month for exports as prices fall in response to higher volumes, hence expect a small widening of the trade deficit. "The annual deficit should come in around NZ$3.7b, a steady outcome".

    NZD/USD levels

    Technically, the 100 and 20 sma on thew hourly chart act as a resistance ahead of a break to the 200 sma o the same time frame at 0.6634 guarding recent highs of 0.6668. To the downside, the lows 0f 0.6565 guard 0.6545 through the daily 200 sma at 0.6554. 0.6347 is the 2016 so far.
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