NZD/USD: Targets the 100 Week SMA at 0.7190
NZD/USD has been a top performer on the back of the RBNZ holding steady while continuing to assess the data although making it very clear that the door is left open for further easing in the future as and when required, also commenting that the bird is too high.
However, the market is getting out of the dollar while the Fed is losing grip of a convincing stand in respect to whether they can raise interest rates as the US economy continues to show signs of weakness. Today, the greenback has managed to save some face on the US data front. Initial Claims beat expectations at 264K, taking the 4-Week Average to 269.5K from 277K. Tomorrow's Consumer Confidence by the Reuters/Michigan index is up tomorrow to close down the week.
NZD/USD has been testing the downside, capped at the highs on two occasions and just shy of 0.7150 while the 20 sma on the 1hr sticks continues to support bullish tend commencing at the end of lats month's business. Today, that level is located at 0.7119. A break of this and a test of the 50 sma at 0.7042 could be significant and end the case for further upside in the meantime. A phase of consolidation before losses to the 100 sma on the same time frame at 0.6987 and previous resistance at 0.6960 could offer strong support on the downside. On the upside, 0.7190/00 are key levels (100 week sma).