NZD/USD: Downside capped by 5-day MA

NZD/USD trims losses, 5-day MA offers support.
The pair needs to find acceptance above the 10-day MA.

Omkar Godbole FXStreet Contributor

The NZD/USD pair has recovered 10 pips from the session lows, but is still down 0.16 percent on the day and was last seen trading 0.6905.

The New Zealand dollar fell in early Asia after the official data showed New Zealand retail sales volumes rose in the first quarter at the slowest rate for more than five years.

Data

New Zealand Q1 retail sales volumes decrease to 0.1% quarter-on-quarter vs previous 1.7%.
New Zealand Q1 retail sales quarterly decreased to 3% year-on-year vs previous 5.4%.

However, the bears failed to cut through the 5-day moving average (MA) located at 0.6891, possibly due to the signs of exhaustion in the treasury yields. As of writing, the 10-year yield is trading at 3.065 percent vs a recent high of 3.128 percent.

That said, it may be too early to call a bottom in NZD/USD as the pair still trades below the descending 10-day MA, currently located at 0.6925.

NZD/USD Technical Levels

Acceptance above 0.6925 (10-day MA) could yield a rally to 0.6979 (23.6% Fib R of Apr-May drop) and 0.70 (psychological hurdle). On the downside, support is lined up at 0.6891 (5-day MA), 0.6871 (May 17 low) and 0.6851 (recent 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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