- DXY back in the red.
- China’s and US CPI in focus this week.
The NZD/USD pair reversed a dip to 0.7160 and regained poise over the last hour, as the bulls now look to reclaim that 0.72 handle.
NZD/USD finds support ahead of 5-DMA at 0.7154
The Kiwi catches a fresh bid-wave in Asia and flirts with three-month tops of 0.7188, as the sentiment around the greenback remains broadly undermined, despite higher Treasury yields, in response to higher US wage growth data, up 2.5% y/y.
The mixed US jobs numbers failed to offer any respite to the USD bulls, as the 2017 year-end selling bias extends well into 2018 amid increased concerns over the Fed’s rate hike outlook. Meanwhile, weekend’s comments from the San Francisco Fed President John Williams triggered the renewed weakness around the buck.
Williams said that “the economy is doing great, everyone expects us to raise rates gradually … and if the data change we can respond to that.”
Focus now shifts towards a slew of key macro releases due this week, including the US and Chinese CPI figures, which are expected to have a significant bearing on the pair. In the meantime, the FOMC member Bostic’s speech will be closely heard for fresh trading impetus in the day ahead.
The pair finds next resistances at 0.7188 (3-month tops), at 0.7200 (natural resistance), 0.7227 (Oct highs). Meanwhile, the supports are located at 0.7154 (5-DMA), 0.7143 (200-DMA) and 0.7122 (10-DMA).