NZD/USD: bulls in control but 50% off its post US CPI miss highs

NZD/USD has been up to as high as 0.6590 on Thursday following a busy session overnight in both European and US markets. The bird gave back 50% of the move when the dollar bounced from its lows down at 94.43 recovering to 94.68 - currently, NZD/USD trades at 0.6566 and is settling into what looks to be a quiet end to the Asian week before the dust gets kicked up again in the US close.

Thursday brought central banks officials together for their interest rate decisions, namely the MPC for the Boe and the ECB across the channel - interms of the BoE, there was little  that should unduly influence GBP, although the ECB expects a “substantial” pick up in core inflation next year - 

"Certainly the RBNZ is an outlier with the market pricing in a decent chance of cuts, which is an important factor keeping the NZD under pressure,"

analysts at ANZ argued. 

Bullish for day ahead

"It was an overnight session with plenty to whip currency markets around, from weaker US CPI figures to an upbeat ECB, aggressive Turkish central bank policy action and more Trump tweets regarding trade. The NZD is a touch higher and could potentially continue to grind a little further today but we don’t see it going too far", the analysts at ANZ explained.

NZD/USD levels

The bird is now well and truly off the lowest levels since Jan 2016. The 4-hr RSI offers further room to the up-side with the price now above the 4-hr 50 SMA while the 10-4HR SMA turns higher and crosses up - bullish. Key support is located at 0.6470 while resistance comes in at 0.6640.