NZDUSD
NZDUSD adds 0.62% higher at 0.6363 on broad USD weakness. Electronic Card Retail Sales for October in New Zealand contracted by 0.6% on a monthly basis, below the market forecasts. Last week the New Zealand Unemployment Rate 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.
On Wednesday, analysts expect that Reserve Bank of New Zealand will cut interest rates by 25 basis point to 0.75%. The Treasury of New Zealand 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.
NZDUSD reverses Friday’s sharp losses and regains the 50-day moving average, the pair retreated 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 0.6370 today’s top while 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 0.6344 the 100-day moving average, while extra support stands at 0.6326 the daily low. 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.