The NZ dollar fell on the back of some disappointing producer prices data out of New Zealand. PPI Output and PPI Input fell 0.5% q/q and 1.0% q/q respectively in Q2. The soft numbers were largely the result of weak dairy prices and don’t bode well for inflation going forward, thus investors responded by selling the kiwi.
NZDUSD plummeted on the back of NZ’s PPI figures, but all is not lost for the commodity currency. The next few days will be crucial for price action going forward. There is a bullish divergence between price and RSI on a few time frames, which suggests that the pair may be gearing-up for a run higher. Also, some other technical indicators support the aforementioned bullish scenario (bullish crossover in daily MACD and stochastic indicators).
However, the pair has broken through its 200-day and 200-hr SMAs – we are waiting for confirmation from the former – which is slightly concerning. There is also bearish crossover in 4-hr MACD which may highlight some underlying weakness.
Source: FOREX.com
Recommended Content
Editors’ Picks
AUD/USD gains momentum above 0.6500 ahead of Australian Retail Sales data
AUD/USD trades in positive territory for six consecutive days around 0.6535 during the early Asian session on Monday. The upward momentum of the pair is bolstered by the hawkish stance from the Reserve Bank of Australia after the recent release of Consumer Price Index inflation data last week.
EUR/USD: Federal Reserve and Nonfarm Payrolls spell action this week
The EUR/USD pair temporarily reconquered the 1.0700 threshold last week, settling at around that round level. The US Dollar lost its appeal following discouraging United States macroeconomic data indicating tepid growth and persistent inflationary pressures.
Gold: Strength of $2,300 support is an encouraging sign for bulls
Gold price started last week under heavy bearish pressure and registered its largest one-day loss of the year on Monday. The pair managed to stage a rebound in the second half of the week but closed in negative territory.
Ethereum fees drops to lowest level since October, ETH sustains above $3,200
Ethereum’s high transaction fees has been a sticky issue for the blockchain in the past. This led to Layer 2 chains and scaling solutions developing alternatives for users looking to transact at a lower cost.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.