NZD/USD: remains pressured below 50 DMA

By FXStreet FXStreet (Guatemala) – NZD/USD is starting out Asia on a cautiously firm footing having lost the 0.64 handle and is in defence of the downside pressures from above 0.6450 and supply of last week.

NZD/USD was mixed yesterday having rallied from 63.20 initially on the FOMC outcomes but soon met offers at 0.6445 and dropped back to the 50 SMA and slightly beyond on the hourly sticks around the 0.6350 level.

In respect to the fundamentals, this week offers key US data that markets will be monitoring closely looking for clues as to when the Fed will hike, given that each month is live and a rate hike could come from them at any time while they themselves are on the lookout for signals back towards their 2% inflation target and an improvement in the labour market. For NZ, today we had the Westpac consumer confidence at 106 vs previous 113.0, although this not usually a market moving event. More key will be with the trade balance later in the week while commodities continue to weigh the bird down.

NZD/USD levels

On a full recovery, the next line of resistance above recent and aforementioned highs stands at the 50 DMA, now at …read more

Source:: FX Street