Global macro overview for 11/05/2016:
The Reserve Bank of New Zealand had released its Financial Stability Review overnight and it warns that the risks to New Zealand's financial system have increased in the past six months. The main factors responsible for this situation are slowing global growth, low dairy prices and rising house prices. Moreover, Bank Governor Graeme Wheeler says in his speech, that the outlook for the global economy has "deteriorated" in recent months. Even the lower interest rates and low oil prices have not been enough to prevent a slowdown in the economies of a number of New Zealand's trading partners. In conclusion, the review is rather pessimistic about the future of the global and internal economy, so the pressure on RBNZ to further cut the interest rates in order to stimulate the economy will grow during the next six months.
Let's now take a look at the NZD/USD technical picture in the daily time frame. Recently, bears had managed to break out below the golden trend line and now the test from the up side is taking place. Nevertheless, the daily hammer candle might provide a temporary relief rally towards 0.6900 level if bulls will manage to close the daily candle above the resistance at the level of 0.6806.
