Forex: Kiwi pops on better confidence data than expected, stalls below 0.8450 (Barcelona) - NZD/USD is currently trading above the 0.84 handle at 0.8425 bids, off recent session and weekly highs at 0.8442, following better than expected confidence data in New Zealand. The NZIER Business Confidence data came in better than expected at 20% when 8% was the consensus projected, and growing for the last three months. The pair jumped from session lows at 0.8400 to mentioned highs.

More mixed data has come out today from NZ as well, like second consecutive month showing a deflationary rate of -0.2% for the month of Dec in food price index, coming from a previous one of -0.8%, something that is not supportive for further RBNZ rate hikes. Housing price figures were also worse than expected, showing a -0.6% decrease in the REINZ HPI Dec data month to month, when consensus was around the +1.4%.

Immediate resistance to the upside for NZD/USD shows at mentioned double intraday high so far at 0.8442, followed by Jan 10 highs at 0.8460, and Dec 14 year 2012 highs at 0.8476. To the downside, closest support lies at Jan 09 highs 0.8411, followed by Jan 07 highs at 0.8380, and Jan 08 lows at 0.8332.