NZD/USD trades above 0.7300 ahead of Fed’s speakers and New Zealand inflation

The NZD/USD is trading at around 0.7330 down 0.18% after the bears tried to test the 0.7300 handle earlier in the European session but failed to break below the level. 

The kiwi has been losing steam since last week. The main driver which brought the pair close to the 0.7400 handle were encouraging comments by the Chinese President about opening up its economy to free trade along with broad-based US dollar weakness. However, the market has digested the latest market drivers and is now debating whether the 0.7400 needs to be retested or if the current pullback down should actually be extended below the 0.7300 handle.  

Meanwhile, later in the day, traders will be on the lookout for the New Zealand inflation data later on Wednesday at 22:45 GMT. The Consumer Price Index (CPI) is expected to have risen by 0.5% for the first quarter of the year. This is a tier-one macroeconomic indicator which can bring high volatility to the market. 

Coming up next in the North American session on the calendar is the Fed’s Beige Book’s report, slated at 18:00 GMT, which is not considered a market mover. Later on at 19:15 GMT, William Dudley who is the President of the New York Federal Reserve Bank will talk about monetary policy and the economic outlook at the City University of New York's Lehman College. Upbeat comments on the economy, the inflation or interest rates can give the greenback a boost. Finally later on Wednesday at 20:15, Fed’s Quarles will speak on "Navigating New Opportunities: Transatlantic Regulatory Reform” in Washington. 

NZD/USD 4-hour chart

The pair has a bearish slant. Support lies at 0.7003 low of the day and then at 0.7243 swing low. On the other hand, resistances are priced in at 0.7340 supply level and at 0.7396 cyclical high.