FxWirePro: NZD/USD spikes past 200-DMA, improvement in New Zealand business confidence boosts kiwi

NZD/USD chart on Trading View used for analysis

• NZD/USD spikes past 200-DMA, trades 0.95% higher on the day at 0.6868 at the time of trading.
   
• Kiwi bulls cheers improvement in New Zealand business confidence which showed that level of pessimism among firms waned somewhat in December.
   
• Data released earlier today showed NZ business confidence rose to -24.1 in December from the November's print of -37.1.
   
• Focus now shifts to the New Zealand third quarter GDP data, which is expected to show that the economy expanded at an annual pace of 2.8 percent. Significant surprise could drive price action.
   
• Also, markets await FOMC interest rate decision (Wed), where the US Fed is widely expected to hike interest rates one last time in 2018.
   
• If the Fed retains hawkish bias, squashing expectations of 2019 rate hike pause, we could see major weakness in the pair.
   
• Technical indicators support weakness in the pair, Stochs and RSI are sharply lower.
   
• 200-DMA is major support at 0.6840, while 50% Fib at 0.6930 is immediate resistance.

Support levels - 0.6840 (200-DMA), 0.6811 (38.2% Fib), 0.6759 (55 EMA)

Resistance levels - 0.69, 0.6930 (50% Fib),  0.6969 (Dec 4 high)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.