- The Kiwi breaking upwards in early trading.
- Little data for the Kiwi leaves the door open for knock-on volatility.
The NZD/USD is trading up in the Tokyo markets, breaking passed the 0.7300 handle as of writing.
With the NZD slated for a light showing data-wise this week, the NZD/USD’s focus will be driven largely by market sentiment, with the Kiwi currently spiking thanks to knock-on Yen buying to mark the beginning of the week.
Key economic data points for New Zealand were recently revised upwards, but weak points remain within the Kiwi’s economy, and with growth lagging behind global trends, the Reserve Bank of New Zealand is expected to stand pat on rates well into 2020.
The pair is currently rejecting support from the 34 EMA, but bearish pressure remains strong as a soft double-top forms on Daily candles; H4 charts show a potential floor pricing in from 0.7286, though last week’s decline from 0.7437 leaves a lot of ground to cover. Intraday support rests at 0.7289 and 0.7276 with resistance stacked up from 0.7322 to 0.7337.