NZD/USD has showed great amount of bullish rejection recently off the resistance level of 0.7370 with a daily close. After the hawkish FOMC Statement providing a hint about December rate hike, USD has spiked against NZD and this is expected to continue further in the coming days. Today, US Unemployment Claims report was better than expected decreasing to 259k from the previous figure of 282k which was expected to increase to 302k, Philly Fed Manufacturing Index report was published with an increase to 23.8 from the previous figure of 18.9 which was expected to decrease to 17.3, HPI report showed an increase to 0.2% from the previous value of 0.1% but it was worse than expected value of 0.4%, CB Leading Index report showed an increase to 0.4% which was expected to be unchanged at 0.3%, and Natural Gas Storage also showed an increase to 97B from the previous figure of 91B which was expected to be at 93B. On the other hand, New Zealand GDP report was published as expected at 0.8% increasing from the previous value of 0.6%, Visitor Arrival report showed less deficit at -0.3% from the previous value of -5.3%, and Credit Card Spending report showed a decrease to 6.4% from the previous value of 7.1%. To sum up, despite having positive economic reports NZD was unable to put pressure on USD throughout the day amid the FOMC policy decision. Besides, after the positive economic reports from the US the bearish pressure has become even stronger. As for the current scenario, further bearish pressure is expected to persist in this pair for the coming days.
Now let us look at the technical chart. The price has shown a great amount bearish pressure today after the recent bullish rejection off the 0.7370. Currently, the price is expected to proceed lower towards 0.7200 support level and later towards 0.7050 support level. As the price remains below the resistance level of 0.7370, the bearish pressure is set to continue further.
