FxWirePro: NZD/USD slips below 55-EMA, more weakness on cards

Chart - Courtesy Trading View 

NZD/USD extends previous session's downside, was trading 0.59% lower on the day at 0.5846 at around 07:35 GMT.

An internal report released by the New Zealand central bank on Thursday says monetary tightening should have started earlier.

The RBNZ review found monetary policy decisions were consistent with the data available at the time, while worst case scenarios were avoided.

Cautious optimism prevails ahead of crucial US inflation data, downbeat forecasts tease bears.

Preliminary estimates suggest the headline CPI is likely to slip lower to 8.0% vs. the prior release of 8.2%. 

While the core CPI that excludes oil and food prices is seen lower at 6.5% against 6.6% recorded earlier.

Data will determine whether the Fed will increase the peak for terminal rates or will leave them unchanged.

Technical bias for the pair has turned bearish on the intraday charts. Price action has slipped below 200H MA.

Support levels - 0.5815 (21-EMA), 0.5782 (20-DMA)

Resistance levels - 0.5870 (55-EMA), 0.5909 (5-DMA)

Summary: NZD/USD is on track to test 21-EMA support at 0.5815, break below will drag the pair lower.