NZD/USD: Downside capped by 5-day MA
|- NZD/USD trims losses, 5-day MA offers support.
- The pair needs to find acceptance above the 10-day MA.
The NZD/USD pair has recovered 10 pips from the session lows, but is still down 0.16 percent on the day and was last seen trading 0.6905.
The New Zealand dollar fell in early Asia after the official data showed New Zealand retail sales volumes rose in the first quarter at the slowest rate for more than five years.
Data
- New Zealand Q1 retail sales volumes decrease to 0.1% quarter-on-quarter vs previous 1.7%.
- New Zealand Q1 retail sales quarterly decreased to 3% year-on-year vs previous 5.4%.
However, the bears failed to cut through the 5-day moving average (MA) located at 0.6891, possibly due to the signs of exhaustion in the treasury yields. As of writing, the 10-year yield is trading at 3.065 percent vs a recent high of 3.128 percent.
That said, it may be too early to call a bottom in NZD/USD as the pair still trades below the descending 10-day MA, currently located at 0.6925.
NZD/USD Technical Levels
Acceptance above 0.6925 (10-day MA) could yield a rally to 0.6979 (23.6% Fib R of Apr-May drop) and 0.70 (psychological hurdle). On the downside, support is lined up at 0.6891 (5-day MA), 0.6871 (May 17 low) and 0.6851 (recent low).
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.