NZD/USD: flirting with key resistance
|- The NZD/USD is seeking acceptance above the key resistance at 0.6851 (May 16 low), having scaled 0.6830 (38.2% Fib R of 0.7060-0.6688).
- An above forecast China PPI is good news for the NZD.
The NZD/USD is mildly bid in Asia and is looking to scale the key resistance at 0.6851 (May 16 low) in a convincing manner.
A daily close above the key hurdle would validate the pair's move above 0.6830 (38.2% Fib R of 0.7060-0.6688) and embolden calls for a stronger rally towards the 50-day moving average (MA), currently lined up at 0.6921.
The New Zealand electronic card retail sales data released earlier today carried a strong headline, but the details revealed the 0.8 percent month-on-month rise seen in June and an upwardly revised 0.6% m/m lift in May were insufficient to offset April’s 2.2% decline. The murky details of the retail sales data could be capping the upside in the NZD/USD around 0.6851.
That said, a better-than-expected China producer price index (PPI) - a good indicator of demand for commodities - released a few minutes ago could make way for a solid break above 0.6851.
NZD/USD Technical Levels
Resistance: 0.6851 (May 16 low), 0.6921 (50-day moving average), 0.70 (psychological level).
Support: 0.6832 (session low), 0.6814 (5-day moving average), 0.6787 (10-day moving average).
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.