NZD USD trading News 1
10/18/2016 11:52:54 AM
The NZD/USD pair expanded upbeat CPI-led bullish momentum and has now moved within considerable distance of 0.7200 handle.
Currently trading at a 7 day high level around 0.7195 level, the pair's first leg of up-move, led by a broad based USD, got a further improvement after NZ quarterly CPI surprisingly increased to 0.2% in Q3 as against consensus estimates of a flat reading. Today's inflation data cooled-off speculations of additional rate-cut by RBNZ at its November meeting and raised the pair back above 100-day SMA.
A follow through buying interest above 0.7200 handle is probable to boost the pair immediately towards 0.7220 horizontal persistence above which a fresh bout of short-covering has the potential to continue improving the pair more towards 0.7300 handle with 0.7270 area acting as intermediate persistence.
In the meantime on the weakness, 100-day SMA near 0.7170 area now becomes immediate support to defend, which if broken could take the pair back towards session low support near 0.7130 region. A follow through selling pressure below session low support would disprove any near-term bullish bias and turn the pair at risk to head back towards 0.7100 handle.