- Kiwi up on thin volumes ahead of Europe market open.
- Aussie employment figures later this week promises some volatility.
NZD/USD is driving upwards in thin markets today, treading into 0.7275 territory as of writing.
The Kiwi received a slight boost following better-than-expected Electronic Card Retail Sales data for January which showed an uptick in consumer spending using credit cards.
New Zealand’s currency could use any help it can get from economic data following recent dovish rhetoric from the Reserve Bank of New Zealand (RBNZ) that sees the central bank far off from increasing interest rates as the NZ economy struggles to pick up steam, lagging behind competitors in the global inflationary environment.
Little is on the docket for the island country this week, but NZD traders can expect some knock-on volatility looking forward when Australia drops their Employment Change and Unemployment Rate figures on Thursday at 01:30 GMT.
The pair has receded over the past two weeks as the RBNZ is dedicated to holding rates well into 2020, currently pricing in a decline just beneath major resistance at 0.7380, while current action is capped by support and resistance at 0.7193 and 0.7340, respectively. Longer-term, NZD/USD is trading near the upper bounds of a rough sideways channel, though price appears to be pricing in a turnaround on support from the 34 EMA at 0.7225.