NZD/USD flatlined despite golden cross as investors await inflation figures
|- Golden cross - bullish 50DMA and 200DMA cross seen,
- Still, Kiwi rally stalls near 0.7280.
- Focus on inflation indicators.
Having hit a low of 0.7176 on Friday, the bird is trading in Asia in a sideways manner around 0.7260 levels. Despite the 50-day MA and 200-day MA bullish (golden) crossover yesterday, the rise in the NZD/USD ran out of steam at 0.7277 in the overnight trade.
Caution seems to have seeped into markets ahead of the RBNZ's survey of expectations (due tomorrow), which is expected to show a subdued outlook for inflation.
Also, US is set to report January inflation number tomorrow. A better-than-expected number could push 10-year yield above 3 percent, thus leading to another round of sell-off in equities and risk currencies like the NZD. On the other hand, NZD/USD could gain altitude on a weak CPI figure.
NZD/USD Technical Levels
A daily close above 0.7279 (Jan. 30 low) would suggest the pullback from the Jan. 24 high of 0.7436 has ended and the rise from the recent low of 0.7176 could be extended further to 0.7350 (Feb. 6 high) and 0.74 (zero levels). On the other hand, a break below 0.7247 (session low) could yield a decline to 0.7210 (Feb. 7 low) and 0.7176 (Feb. 8 low).
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