NZD/USD has managed to push higher, having bounced off the 0.6500 support area with a daily close. So the pair is going to trade higher in the coming days. Despite soft economic reports from new Zealand this week, yesterday NZD managed to counter the preceding bearish trend in the pair.
Today New Zealand FPI report was published with a decrease to -0.5% from the previous value of 0.7% which triggered certain pullbacks in the process. Tomorrow Business NZ Manufacturing Index report is going to be published which previously was at 51.2 and a positive actual result of the economic report is expected to inject further bullish momentum in the process. Besides, RBNZ is not considering rate hikes as they want to stabilize their economy for better in the short and medium term.
On the other hand, amid a series of worse-than-expetced economic reports published recently, USD is quite weak against NZD in the process. Today US CPI report is going to be published which is expected to increase to 0.3% from the previous value of 0.2% and Core CPI is expected to remain unchanged at 0.2%. Moreover, Unemployment Claims report is expected to increase to 210k from the previous figure of 203k, Natural Gas Storage is expected to increase to 65B from the previous figure of 63B, and FOMC Members Quarles and Bostic are going to speak today regarding the upcoming interest rate decision and future monetary policies.
Meanwhile, USD has been struggling to gain momentum in the market due to recent worse economic reports whereas any positive figure in pending economic reports is expected to inject some pressure against NZD in the process. Otherwise, NZD may remain having an upper hand over USD.
Now let us look at the technical view. The price has pushed higher from a strong support area of 0.6500 area having Bullish Divergence in place which does indicate certain bullish momentum in the pair with target towards 0.6720 resistance area in the coming days before pushing lower with the trend again. As the price remains below 0.6720 area with a daily close, the bearish bias is expected to continue.
SUPPORT: 0.6500
RESISTANCE: 0.6720, 0.6850
BIAS: BEARISH
MOMENTUM: VOLATILE
