NZD/USD slips below 0.6000 as risk appetite crumples
- The NZD/USD has dropped back beneath 0.6000 as markets turn back into the US Dollar.
- The Kiwi's recovery pattern is beginning to calcify into consolidation.
- NZ PPI to close out the Kiwi's data for the week, US Housing Starts in the barrel for Friday.
The NZD/USD is slipping back on Thursday and is set for its worst trading day in a month, down over 1.2% from the day's high of 0.6037.
A broad miss for US economic data soured market risk appetite, pushing the US Dollar (USD) higher against riskier assets like the Kiwi (NZD). US Initial Jobless Claims for the week into November 10th increased to 231K, higher than the 220K expectation and stepping over the previous week's 218K showing (revised upwards from 217K).
US Industrial Production also missed the mark, with October's production declining by 0.6%, falling back from September's meager 0.1% growth (revised downward from 0.3%) and blowing right past the market's forecast of -0.3%.
New Zealand's Producer Price Index (PPI) will land in the early Friday session when NZ markets open ahead of the pack. NZ PPI in the third quarter last came in at -0.2% for Input and 0.2% for Output.
NZD/USD Technical Outlook
The Kiwi's pullback below the 0.6000 handle leaves the NZD/USD exposed to further downside, with the pair at risk of getting pulled back through the 50-day Simple Moving Average (SMA) and into the 0.5900 handle, with the last swing low sitting near 0.5860.
On the topside, This week's peak at 0.6050 represents a technical resistance level due to repeated rejections from the region since falling into the sub-0.6100 zone in August. Long-term technical resistance will be capping off any upside runs at the 200-day SMA near 0.6100.
NZD/USD Daily Chart
NZD/USD Technical Levels
Author
Joshua Gibson
FXStreet
Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.
