FxWirePro: NZD/USD holds marginal gains, upbeat NZIER's economic outlook boosts kiwi

NZD/USD chart - Trading View 

NZD/USD was holding marginal gains on the day and was trading 0.17% higher on the day at 0.7139 at around 04:00 GMT.

The New Zealand dollar was buoyed after New Zealand Institute of Economic Research (NZIER) revised up economic outlook for the nation.

NZIER in its latest report, revised up the near-term growth outlook for New Zealand. The annual average GDP growth is expected to reach 5 percent in March 2022.

Dismal Business NZ PSI (May), G7’s take on China and FOMC meeting scheduled later this week keep traders from placing aggressive bets.

Technical bias is also in favor of bears. Price action has broken below daily cloud and is holding minor support at rising trendline.

GMMA shows minor trend is strongly bearish. MACD and ADX supports weakness. Bearish RSI divergence adds to the downside bias.

Major Support Levels: 

S1: 0.7125 (Trendline support)

S2: 0.71 (Psychological mark)

S3: 0.7027 (200-DMA)

Major Resistance Levels: 

R1: 0.7167 (5-DMA)

R2: 0.7185 (55-EMA)

R3: 0.7209 (20-DMA)

Summary: NZD/USD trades with a bearish bias. Recovery attempts lack traction. Pre-Fed caution to prevail, keeping trades muted. Decisive break below trendline support will drag the pair lower. Scope for dip till 200-DMA at 0.7027.