NZD/USD turns lower despite Sales beat, approaching 0.73

NZD/USD lower despite upside retail sales beat.
Kiwi caught in a bearish spiral as economy muddles.

NZD/USD is softening in Tokyo trading, currently testing around 0.7310 as of writing.

Market sentiment was the main driver for movement heading into the Friday session, and with little data out this week for the Kiwi risk sentiment is weighing the currency down heavily even as a reversal in market-wide Dollar buying on Thursday couldn't keep NZD/USD buoyed for long.

Retail Sales earlier today had little impact on the pair, despite the headline figure coming in at 1.7%, above the forecast 1.4% and far outpacing the previous figure of 0.3%. Economic data for New Zealand has been mixed lately, and with NZ's economy expected to remain tied to Australia and lag behind global trends, intrinsic weakness in the Kiwi is likely to remain a key factor as risk aversion sent the Greenback soaring and plummeting on the back of skittish bond yields.

The Reserve Bank of New Zealand (RBNZ) has a new governor taking the helm effective March. Adrian Orr will be heading up NZ's central bank and is widely expected to keep the keel even and maintain the previous governor various policies and targets. Governor Orr held the title at the RBNZ for several years before departing to take part in the New Zealand Super Fund in 2007.

NZD/USD Technicals

The pair is declining from a soft double-top forming near the 74.00 handle, and the recent turnaround sees the price approaching the 34 EMA at 0.7275. NZD/USD has been caught in a messy lateral channel since the 3rd quarter of 2016, and the pair looks set to continue to the lower bound if the turnaround from 0.7400 holds. Support is currently waiting at 0.7290 and 0.7256, while resistance builds at 0.7372 and 0.7427.

Share: Feed news

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.