NZD has been weaker in comparison to USD recently which led to impulsive bearish pressure rejecting off the 0.6980 area. The price was quite indecisive after being pushed by the bulls towards 0.6980 area which turned into a bearish impulsive move amid recent positive economic reports from the US which reversed the market sentiment. Ahead of the long-awaited Fed Rate Hike in December, USD is expected to gain momentum over NZD which is expected to lead to further bearish momentum in the future. Today, USD was quite mixed in light of the economic reports which triggered certain volatility in the pair. Today, US Unemployment Claims report was published with unexpected growth to 249k from the previous figure of 239k which was expected to decrease to 235k, Import Prices decreased to 0.2% from the previous value of 0.8% which was expected to be at 0.4%, and Philly Fed Manufacturing Index report was published with a decrease to 22.7 from the previous figure of 27.9 which was expected to be at 24.5. Along with this series of worse economic reports today, Capacity Utilization Rate report was published with an increase to 77.0% from the previous value of 76.0% which was expected to be at 76.3% and Industrial Production report also showed some growth to 0.9% from the previous value of 0.3% which was expected to be at 0.5%. On the other hand, today there were no economic events or reports from New Zealand but tomorrow NZ PPI Input report is going to be published which is expected to decrease to 1.2% from the previous value of 1.4%, PPI output report is expected to increase to 1.4% from the previous value of 1.3%, and Business NZ Manufacturing Index is expected to be quite neutral which previous was at 57.5. As for the current scenario, NZD has been quite weak in nature and upcoming economic reports forecasts were also quite mixed. Though the US had a series of worse economic reports today, the market sentiment is propping up the US currency amid growing expectations for a December rate hike. To sum up, USD is expected to keep momentum over NZD in the coming days.
Now let us look at the technical chart. The price is currently residing just above the support area of 0.6810 which is expected to be retested soon. The price has been quite reactive to the dynamic level of 20 EMA before it pushed lower recently which indicates that the trend is currently showing some non-volatile price action behavior which is expected to push further downward in the coming days. As the price remains below the dynamic level of 20 EMA and 0.70 resistance area, the bearish bias is expected to continue further.
