NZD/USD recovering from opening bearish gap

By FXStreet FXStreet (Guatemala) – NZD/USD has opened in early Asia rebounding after a test of the 0.64 handle when the price of oil weighed heavily on the commodity currencies. Oil has been pressured again and is extending its decline below $29 as Iran emerges from a decade of international sanctions.

NZD/USD’s recovery has targeted a close of the bearish gap, but has some work to do before the 100 sma on the hourly chart at 0.6501. The price has been in decline since the start of trade in 2016 with fears over the state of the global economy commodity prices falling and the greenback in demand.

The data has been light for the Kiwi, but this week comes with the GDT price index again as a potential catalyst. We also get CPI inflation and US housing data for the US. “Disinflationary forces tempering prices are expected to continue building in December.

Rising food prices should provide a partial offset to the drop in energy prices and the lagged impact from the strong USD. Core should outperform headline on account of weak core commodity prices and favorable base effects should result in an acceleration of annual CPI inflation,” explained …read more

Source:: FX Street