- NZD/USD is trading 0.37% higher on the day as the US dollar resumes weakness as we head into the NY session.
- Technical indicators on daily charts are flat to slightly bullish.
- The major finds stiff resistance at 21-EMA and falling trendline at 0.6810. Break above will propel the pair higher.
- We evidence bullish divergence on RSI and Stochs which keeps scope for upside in the pair.
- Focus now on New Zealand Q2 employment report and the trade balance for June, both scheduled to be released today by 22:45GMT.
- New Zealand's trade balance for June is expected to contract from $294 million to $200 million m/m, while market median forecasts are expecting a decline in both imports and exports
- In the US, focus will beon the PMIs and more importantly the Q2 GDP data which will provide further impetus.
Support levels - 0.6787 (5-DMA), 0.6716 (61.8% Fib), 0.6685 (trendline)
Resistance levels - 0.6810 (21-EMA and trendline), 0.6855 (23.6% Fib), 0.6882 (50-DMA)
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -81.6163 (Bearish), while Hourly USD Spot Index was at -176.616 (Bearish) at 1115 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
