NZD/JPY looking at further downside as risk appetite stays in the stable
|- Kiwi took a hammering last week, the new week isn't opening too hopeful.
- Lack of movement on NZ interest rate is already priced in.
The NZD/JPY pair is down at the beginning of the Tokyo trading session, testing below 76.40 but looking for a bounce-back. The Kiwi got pummeled by the Yen last week as risk aversion led markets around by the nose, and the same old tone appears to be kicking in for the new week.
Risk appetite has had a bullseye on its back recently, with Trump's cyclical hiring and firing of key White House personnel, trade war musings on the back of Trump's tariff rhetoric, and Japan's ongoing land sale scandal that sees the Japanese Prime Minister Shinzo Abe's approval rating tanking to its lowest level in years.
NZ Interest Rate Week
Wednesday will see the Reserve Bank of New Zealand's (RBNZ) Interest Rate Decision and Rate Statement at 20:00 GMT. The RBNZ is already slated to stand on rates well into next year, but traders will be paying attention to the RBNZ's vernacular within the Rate Statement. Before the New Zealand interest rate decision will be Westpac's Consumer Survey late today at 21:00 GMT. The consumer confidence survey index has been sinking lately as economic figures for the island economy continue to middle, but optimism remains high in New Zealand as they wait for stronger growth figures.
On the Japanese side, mixed import/export figures kicked off the new week: Imports and Exports both missed expectations with year-on-year Imports figures coming in at 16.5% versus the expected 17.1%, and Exports showing 1.8% versus the anticipated 1.9%. The Merchandise Trade Balance Total showed a surprise ¥3.4B upswing versus the expected ¥-99.6B contraction. Next on the macro docket for the Yen will be Japan's Leading Economic Index at 05:00 GMT on Tuesday.
NZD/JPY Technicals
The pair tumbled off of a rejection of resistance on Daily candles from 78.30 (34 EMA), and the next barrier for a further drop will be 75.93 (previous low), while intraday resistance is currently sitting at 76.70 (Friday's last swing high) and support at 76.20 (previous swing low point).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.