NZD/USD Tracks Aussie Lower Post-CPI Debacle
The selling interest around the NZD picked-up pace after its OZ neighbour, the Aussie collapsed following the release of awful CPI report.
NZD/USD stalled a 2-day recovery
Currently, the NZD/USD pair trades 0.30% lower at 0.6877, hovering within a striking range of fresh session low struck at 0.6868 earlier on the day. The Kiwi failed to sustain its recovery mode above 0.69 handle and dropped nearly 50 pips in a rub-off effect to the free-fall seen in the Australian dollar after the OZ consumer prices dipped for the first time in 7 years.
Australia's CPI fell 0.2% in Q1, the first decline in the figures since 2009 and much weaker than expectations of a 0.3% increase. Australia's trimmed mean CPI eased from 2.1% to 1.7% last quarter.
The major halted its downslide and now consolidate, having found some support from higher oil prices. Oil prices rallied to fresh 2016 highs after the API inventory report showed a surprise draw in US crude stockpiles and strengthening gasoline demand.
Next in focus remains the outcome of the Fed’s two-day policy meeting concluding today, followed by RBNZ cash rate decision due tomorrow in the Asian morning.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6915/26/ (10-DMA & 200-SMA), above which it could extend gains to 0.6950 (psychological levels). To the downside immediate support might be located at 0.6869/68 (5-DMA/ daily low) and from there to 0.6800/0.6787 (round number/ 50-DMA).