NZD/USD: En-Route for Key 20 Supporting DMA 0.6900
NZD/USD has taken a tumble on a number of counts and
broad dollar strength and in an extension of last nights supply on the
back of the RBA cutting rates in the pacific.
NZD/USD was sold off in tandem with the Aussie overnight, caught up in that malaise, but was also on the sellers palms as the GDT price index failed to continue in a recovery with a big miss of -1.4% vs 3.8% previous and March's recovery. Oil has been a catalyst for the move in the greenback, sold-off form above $45bbls down to $43.30bbls lows so far WTI. Seasonally, the greenback usually does well vs Kiwi in May (but not so much vs the CAD in the 2000's) while stocks usually get sold-off, "Sell In May And Go Away" - So we will see how that plays out this month.
NZD/USD is losing steam in the rising channel commencing mid January of this year. To the downside, the 20 dma resides at 0.6900 as a key supporting and psychological level that of broken would put the rising support line in to jeopardy, guarding 0.6720. On a break of the 2016 highs, the next major target comes on the weekly sticks with Jan 2015 lows of 0.7176 ahead of the 100 weekly sma at 0.7285.