- NZD/USD sold-off following the release of New Zealand’s RBNZ Q2 inflation expectations gauge.
- Kiwi bulls unimpressed by a slightly better RBNZ Q2 2-year inflation expectations reading, coming in at 1.64% versus 1.63% last.
- However, the gauge remained at the second lowest levels since June quarter in 2014 and weighed heavily on the sentiment around the NZD.
- The pair deflates from 0.6840 levels to currently trade around 0.68. Strong trendline support located at 0.6740, weakness only on break below.
- Ongoing rally in the oil prices continues to offer some support to the major.
- Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-recovers-from-session-lows-at-06746-good-to-buy-breakout-above-06770-208474) has almost hit all targets.
- We advise booking full profits. 0.6847 (double top) is strong resistance. Further gains only on break above.
- Focus on US CPI and industrial production data due later in the NY session, followed by Fonterra’s fortnightly dairy action results for direction in the pair.
The material has been provided by InstaForex Company – www.instaforex.com