FxWirePro: NZD/USD fades upbeat CPI-led gains, finds stiff resistance at 0.71 mark

NZD/USD chart - Trading View 

NZD/USD was trading 0.22% lower on the day at 0.7055 at around 09:00 GMT.

The major has erased upbeat inflation-led gains and has slipped lower from monthly highs at 0.7105.

New Zealand’s consumer price index grew a higher-than-expected 4.9% year-on-year and 2.2% quarter-on-quarter in the third quarter.

The surprise leap in New Zealand’s CPI would likely reinforce the need for the Reserve Bank of New Zealand's hawkish interest rate policy.

On the other side, the US dollar remains on the front foot amid risk-aversion and rising Treasury yields, weighing on the pair.

Technical bias has turned bearish after the pair was rejected at major resistance at 0.71 handle.

Price action is set to resume lower in sloping channel pattern and 200-DMA and channel top are stiff resistance to break.

A potential 'Inverted Hammer' formation raises scope for more weakness. Immediate support at daily cloud top will be crucial level to watch.

Momentum however remains bullish, decisive breakout at 200-DMA could see upside continuation.