- Kiwi bounced off the ascending 5-day moving average.
- Ignores risk-off mood in stocks.
The GDP-led drop in the NZD/USD was short-lived.
The NZD/USD pair found takers below the ascending 5-day moving average of 0.7311 and recovered to 0.7325 – a level seen ahead of the NZ GDP release.
The recovery from the session lows is somewhat surprising, given the risk assets are under pressure due to rising fears of US-China trade war. As of writing, the stocks in Australia, Hong Kong, Japan are trading modestly weaker. Further, the S&P 500 futures are reporting a 0.16 percent drop.
Ahead in the day, the pair will likely track the broader market sentiment and may turn positive if the European desks offer US dollar in response to global trade tensions.
NZD/USD Technical Levels
A move above 0.7354 (previous day’s high) would add credence to the ascending (bullish biased) 5-day MA and 10-day MA and could yield rally to 0.74 – 0.7420 (multiple daily highs). On the downside, a close below 0.7245 (March 8 low) would suggest the rally from 0.7186 (March 1 low) has made a temporary top and would allow re-test the 200-day MA stationed at 0.7184.