- NZD/USD bears in control.
- NZD/USD below key MA's, technically bearish.
NZD performed poorly, falling from 0.7277 to 0.7233. Currently, NZD/USD is trading at 0.7251, up 0.08% on the day, having posted a daily high at 0.7279 and low at 0.7232.
NZD/USD was offered again after a poor start in European trade with some volatility before falling back to 0.7240 as the low just before a pick up to current spot for the close.
There was a lack of drivers for the start of the week although fairly local to the bird, China reported a record CNY2.9 trillion in new bank loans in Jan, way above expectations nearer 2trn, although hardly a mover.
In respect to the US, the White House’s infrastructure proposal had been widely reported ahead of its release today and the key points remain lukewarm for markets, as noted by analysts at Westpac, adding, "The $200bn in federal spending is to be offset with $200bn in cuts to current transportation spending, while the headline $1.5 trillion total is just an estimate of what could happen if state and local governments and private investors join the federal government on projects."
What's on the cards for the bird this week?
There will be data locally later in the week for the Kiwi in business PMI while there could also be some price action around the Aussie jobs report the day before. The major event, however, will come from the US CPI.
NZD/USD dropped below the 10 and 21 daily SMAs and the long upper wick with falling RSI leaves a bearish tint to the picture. 0.7200 opens a run towards the 100-D SMA at 0.7068. The upside targets 0.7520 through 0.7436.
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