NZD/USD recovers to 0.67 handle ahead of China data-dump

  • The Kiwi traders recover some of the post-CPI losses ahead of China data-dump.
  • 200-day SMA acts as immediate resistance for the pair to clear.

NZD/USD trades near 0.6710 as it recovers nearly 30 pips from its post-New Zealand CPI slump during early Wednesday. While softer than expected inflation figures strengthen market consensus for RBNZ’s rate-cut, likely positive data from China seems currently helping the pair.

Forex Today: NZD/USD gets slammed in early Asia (NZ CPI miss)

Headline consumer price index (CPI) for the first quarter (Q1) of 2019 lagged behind 0.3% and 1.7% forecasts as they came in at 0.1% and 1.5% QoQ and YoY respectively.

With the inflation data missing the marks, chances of the Reserve Bank of New Zealand (RBNZ) announcing a rate-cut in May seem brighter. Underlying reasons could be the central bank’s dovish turn in March and Governor Adrian Orr’s recent comments that the RBNZ holds its bearish bias.

China’s data-dump including industrial production, gross domestic product (GDP) and retail sales are in the market’s spotlight for now as the dragon nation is the world’s largest commodity user.
First quarter (Q1) GDP figure for the year 2019 could soften to 6.3% from 6.4% on a yearly format and to 1.4% from 1.5% on QoQ basis whereas March month industrial production may recover to 5.9% from 5.3%. Further, the retail sales (YoY) might please buyers with an increase to 8.4% from 8.2%.

NZD/USD Technical Analysis

The quote needs to regain its stand beyond 200-day simple moving average (SMA) figure of 0.6730 in order to aim for 0.6805-10 resistance-confluence comprising 50-day and 100-day simple moving average (SMA).

Should prices fail to hold recent recovery and again slip beneath 0.6700 round-figure, 0.6650 is likely important support to watch as a break of which could drag prices to 0.6585.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD trims early gains, dangerously close to 1.1200

The positive tone of the pair fades in the American afternoon as demand for the dollar resumes, despite softer-than-expected US data. All eyes on the Fed this week.


GBP/USD extends decline, pierces 1.2550

Despite moving in slow-motion, GBP/USD decline is continuous with the pair trading at levels last seen in January, amid political uncertainty weighing on Sterling.


USD/JPY remains directionless above mid-108s on Monday

The USD/JPY pair is struggling to make a decisive move in either direction on Monday as the slightly upbeat market sentiment doesn't allow the safe-haven JPY to gather strength.


Gold remains on track to close with small losses below $1340

The XAU/USD pair, which closed higher on the weekly chart for the fourth straight time last week, is fluctuating in a relatively tight range on Monday amid a lack of significant fundamental drivers that had a lasting impact on the greenback's market valuation or the risk perception.

Gold News

Gold: Signs of bullish exhaustion ahead of the Fed

Gold's rally seems to have run its course with signs of bullish exhaustion emerging on technical charts ahead of Wednesday's FOMC (Federal Open Market Committee) rate decision.

Read more