- NZD/USD catches a bid on positive inflation expectations.
- US CPI in the barrel for 13:30 GMT.
NZD/USD broke upwards following better-than-expected inflation expectation numbers, crossing the .07300 handle to peak at 0.7307, with the pair now receding slightly with news traders profit-taking.
The Kiwi received a boost in Tokyo trading following an upside beat to RBNZ Inflation Expectations, with data coming in at 2.1% versus the previous reading of 2.0%. The headline number shows an increase in confidence in inflation growth looking ahead two years within the New Zealand economy.
The day is far from over for NZD/USD, with the US dropping high-impact CPI data at 13:30 GMT today, and the pair trading up for a fourth consecutive day following a snappy decline from recent highs.
Intraday supprt for NZD/USD is priced in at 0.7270 and 0.7253 just below, while yesterday’s session high of 0.7314 iis currently resistance, with 0.7345 waiting above should that level fail. Looking longer-term, the pair’s recent rejection of the 34 EMA at 0.7234 signals strong buying power in the pair, while the 200-day SMA at 0.7151 should the current level give way to selling pressure.