Global macro overview for 18/04/2016:
The New Zealand inflation recovered from the lowest level in 15 years, but it is still below the regulator's targets. The Statistics New Zealand reported that CPI climbed 0.2% in the January-March period that was stronger than the median forecast of a zero change and much higher than the 0.5% decrease seen in the previous quarter. The main contribution to that surge came from tobacco sales ( advancing 9.4%) and fruit sales (advancing 8.2%). In conclusion, this reading has left some room for the RBNZ to cut the rates even further and Governor Graeme Wheeler might cut the rates again if needed after cutting it to a record-low of 2.25% in March.
Let's now take a look at the technical picture of NZD/USD in the daily time frame. The current situation is in the advantage of bulls as the market continues to make higher highs and higher lows. This upward move is not very dynamic, but it shows bulls are still in control over this market. The next resistance is seen at the level of 0.6953 - 0.6965 and the next important support is seen at the level of 0.6558 - 0.6543.
