NZD/USD has been quite indecisive and volatile today at the edge of 0.6850 area after impulsive bullish pressure observed recently. Despite the mixed economic data, NZD managed to gain and sustain good momentum over USD ahead of the upcoming rate hike in the US which attracted good amount of market sentiment already.
Recently NZD has been quite weaker amid economic reports risk aversion is expressed by the RBNZ. So, the market is displaying the same sentiment. Recently New Zealand Retail Sales report was published with a decrease to 0.0% from the previous value of 1.1% which was expected to be at 1.0% and Trade Balance increased to -1295M from the previous value of -1596M which failed to meet the forecast of an increase to -850M. Recently RBNZ Financial Stability Report and RBNZ Governor Orr spoke about the ease of New Zealand's financial system risks which is expected to lead to better financial position of the country. Today ANZ Business Confidence report was published unchanged at 37.1. Nevertheless, NZD managed to sustain the momentum it had over USD without much counter trend pressure.
On the USD side, the economic reports published today revealed mixed figure. As a result, investors are in the wait-and-see mood ahead of the probable rate hike in December. Today US Core PCE Price Index report was published with a decrease to 0.1% which was expected to be unchanged at 0.2%, Personal Spending increased to 0.6% from the previous value of 0.2% which was expected to be at 0.4%, Personal Income increased to 0.5% from the previous value of 0.2% which was expected to be at 0.4%, and Unemployment Claims had a negative result of increasing to 234k from the previous figure of 224k which was expected to decrease to 221k.
In the meantime, NZD is holding the upper hand in the pair. That's why the price is still moving higher. Ahead of the rate hike in the US, market sentiment may favor USD but the pair could make certain downward corrections in the coming days inside the upward bias.
Now let us look at the technical view. After the price bounced off the 0.6720 area having dynamic level of 20 EMA as support, the price is currently holding above 0.6850 area from where it is expected to push higher towards 0.7050 in the coming days. As the price remains above 0.6720 area with a daily close, the bullish bias is expected to continue.
SUPPORT: 0.6720, 0.6850
RESISTANCE: 0.7000-50
BIAS: BULLISH
MOMENTUM: NON-VOLATILE
