NZD/USD has been impulsive with the recent bearish gains after rejecting of the 0.6850 resistance area with a daily close. USD gained momentum as per the recent rate hike decision and optimistic future policies and now it is expected to gain further against NZD in the coming days.
Recently, the New Zealand's ANZ Business Confidence report has been published with an increase to -24.1 from the previous figure of 37.1; Westpac Consumer Sentiment has increased to 109.1 from the previous figure of 103.5; and Current Account has decreased to -6.15B from the previous figure of -1.63B which was expected to be at -5.94. Today, the Credit Card Spending report has been published with a decrease to 6.1% from the previous value of 6.4% and Trade Balance has increased to -861M from the previous figure of -1317M which was estimated to be at -880M.
On the other hand, USD is currently quite impulsive with the bearish gains in the pair as per optimistic approach by the Fed about the recent and upcoming rate hike decisions. Recently, the US Federal Funds Rate report has been published with an increase to 2.50%, as expected, from the previous value of 2.25%. Though the Fed is currently thinking of short-term impacts on the economy, most of investors as well as President Trump are concerned about the interest rate hike's impact on business. The Fed signaled that the US economy would grow more slowly in 2019, while inflation being below 2 percent as per the Fed's expectation. According to the recent statement, there could be at least 2 rate hikes in 2019, which might lead the interest rate to 3.50%. The US Existing Home Sales report has been recently published with an increase to 5.32M from the previous figure of 5.22M which was expected to decrease to 5.20M. Today, Philly FED Manufacturing Index is going to be published which is anticipated to increase to 15.1 from the previous figure of 12.9; Unemployment Claims is expected to have negative result of increasing to 216k from the previous figure of 206k; and CB Leading Index is estimated to decline to 0.0% from the previous value of 0.1%. Moreover, tomorrow, the Final GDP report is going to be released which is expected to be unchanged at 3.5%.
Under the current scenario, NZD has been quite mixed with the recent economic reports, but failed to sustain the momentum due to better economic outcomes from USD published recently. USD is currently more optimistic than NZD, and market sentiment is following it precisely. If USD manages to have better economic results in the coming days, further bearish pressure in the pair is expected.
Now let us look at the technical view. The price is currently heading towards the 0.6700 support area from where certain bullish pressure can be observed in the coming days, but if the price breaks below 0.6700 with a strong daily close, the price is expected to push further down towards the 0.6500 support area in the future. As the price remains below the 0.6950-0.70 area, the bearish pressure is anticipated to continue.
SUPPORT: 0.6500, 0.6700
RESISTANCE: 0.6850, 0.6950, 0.70
BIAS: BULLISH
MOMENTUM: VOLATILE
