- NZD/USD holds above 0.73 handle, we see further weakness only on break below.
- The kiwi remains supported in the Asian session after New Zealand inflation data came in slightly better than expectations.
- Data released by the Statistics New Zealand earlier today showed NZ 1Q CPI came in a little better than expectations of 0.4% vs actual 0.5%.
- The quarterly and year-on-year figures coming in at expectations, at 0.5 and 1.1 percent respectively.
- The pair is trading in a 'Rising Triangle' pattern and Technical indicators do not have a clear directional bias.
- Downside has paused at 21-EMA at 0.7307 and break below will extend weakness.
- On the flipside, close above 5-DMA could see some upside.
Support levels - 0.7307 (21-EMA), 0.7288 (50-DMA), 0.7255 (trendline)
Resistance levels - 0.7339 (5-DMA), 0.7395 (April 13 high), 0.74, 0.7435 (trendline)
Recommendation: We prefer to wait wait for clear directional bias.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 22.9697 (Neutral), while Hourly USD Spot Index was at 13.4331 (Neutral) at 0400 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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