NZDUSD
NZDUSD adds 0.13% higher at 0.6382 registering gains after two consecutive sessions with losses boosted by better New Zealand Unemployment Rate which came in at 4.2% topping forecasts of 4.1% in 3Q, the Participation Rate came in at 70.4%, also above expectations of 70.3% in 3Q. Yesterday the New Zealand GDT Price Index came in at 3.7%, above forecasts of 1.9%.
The Treasury of New Zealand yesterday revised lower its estimate for neutral interest rate by 75 basis points to 3%. The Treasury also pointed out about the downside risks to New Zealand’s economy, amid worsening business surveys and global sentiment. During the weekend New Zealand reportedly agreed to upgrade free-trade agreement with China.
NZDUSD felt pressure after RBA cut rates and traders increase bets that RBNZ will follow. RBNZ, in its last monetary policy committee, left interest rates unchanged at 1% as widely expected by markets. The central bank of New Zealand noted that the risks are to the downside amid trade tensions, geopolitical turbulence and low business confidence.
NZDUSD is in correction path from three-month highs after the pair rejected at the 100-day moving average at 0.6465. On the upside, strong resistance for NZDUSD stands 0.6384 today’s top and, the next target is the 0.6465 the high from November 4th before an attempt to 0.6491 the high from August 8th.
On the downside, immediate support stands at 0.6360 daily low a convincing break below might force the pair down to 0.6341 the 50-days moving average. NZDUSD short term outlook is neutral as the pair trapped between the 50 and 100-day moving average; only a break above the 100-day moving average might initiate another leg higher.