FxWirePro: NZD/USD Upside Stalls at Channel Top, Slips Below 5-DMA at 0.6969
- Despite risk-on sentiment, the Kiwi has been left on the sidelines, trades narrow range on the day (0.6982-0.6955).
- Upside in the pair stalls at channel top resistance at 0.7054, pair has now slipped below 5-DMA support at 0.6970.
- Higher US equities overnight and rising oil prices provided fresh impetus to the Asian indices.
- Data earlier today showed NZ’s jobs ads rose strongly in March, internet job advertising lifted 2.8% (sa) in March, while newspaper job advertising rose 4.4% m/m (sa), but remains on a downward trend.
- The bird has had its own domestic positives of late, including upbeat dairy prices. Focus now shifts to RBNZ policy meet next week.
- After recently surprising markets with a rate cut to all time record lows of 2.25%, Wheeler left the door open for further cuts in a very weak inflationary environment.
- Technicals on 4H charts support downside. Pair finds next support at 0.6955, breaks below will find next support at 0.6920 and then 0.6880 (rising trendline).