NZD/USD: Bears fail to keep the pair below 0.69 despite weak NZ data

New Zealand current account deficit rose to 9-year high in March quarter.
New Zealand consumer confidence dipped in Q2 - Westpac survey.
Global dairy prices fell for the second time.
Still, the NZD/USD pair is reporting moderate gains, possibly due to short-term oversold technical conditions.

Omkar Godbole FXStreet Contributor

Currently, the NZD/USD pair is trading at 0.6915, having clocked a low of 0.6890 earlier today.

The bears have failed for the second day to keep the spot below 0.69, despite weak data. Stats New Zealand reported New Zealand March quarter current account deficit at a 9-year high of $3 billion.

Further, New Zealand consumer confidence fell to 108.6 in the second quarter from 111.2 in the previous quarter, according to a survey by Westpac Bank.

What's more, global dairy prices fell 1.2 percent at a fortnightly auction held earlier today, following a 1.3 percent drop in the previous auction.

Still, the Kiwi is flashing green, possibly due to short-term oversold conditions as highlighted by the hourly chart relative strength index (RSI) and 4-hour chart RSI.

However, the tide could quickly turn in favor of the bears if the S&P 500 futures report losses on trade war fear. As of writing, the futures are trading largely unchanged on the day.

NZD/USD Technical Levels

Resistance: 0.6934 (5-day moving average), 0.6974 (10-day moving average), 0.7029 (50-day moving average).

Support: 0.6885 (previous day's low), 0.6851 (May 16 low), 0.6780 (November 2017 low).

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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