NZD/USD has been quite impulsive with bullish gains, leading the price to move up towards 0.7260. Due to recent USD weakness after the interest rate hike by the US Fed last month, NZD gained good momentum which is still being sustained pretty well. Today, New Zealand Building Consents report was published with a significant increase to 10.8% from the previous negative value of -10.4% which did not help the currency to retain the impulsive momentum it had in recent few weeks. On the other hand, today US CPI report is going to be published which is expected to decrease to 0.1% from the previous value of 0.4%, Core CPI report is expected to increase to 0.2% from the previous value of 0.1%, Core Retail Sales report is expected to show decrease to 0.3% from the previous value of 1.0%, and Retail Sales report is also expected to decrease to 0.5% from the previous value of 0.8%. As for the current scenario, US economic reports are likely to have a negative impact on the currency's growth whereas NZD has been already quite stronger. If readings in the US economic reports come out better than expected, than we might see a different picture in the coming days which may lead to bearish impulsive pressure in the pair, taking the price lower in the future.
Now let us look at the technical chart. The price is currently hovering around 0.7260. The pair is is expected to reach 0.7150 support area in the coming days. At present, the dynamic level of 20 EMA is quite far away from the current price position where it will be also working as a confluence to pull the price down towards the support area before showing any bullish move in the future. As the price remains below 0.7350 price area, the bearish bias is expected to continue further.
