The Kiwi remains unchanged against the US dollar, but among commodity currencies is the worst performers. NZD/USD rose during the last hours, erasing losses. The pair bottomed during the European session at 0.6720 and then bounced to the upside. Currently, it trades at 0.6760/70, around the same level it closed yesterday.
The pair weakened earlier after breaking below the 0.6750 level but then managed to bounce and rose back above. The bias continues to favor the US dollar but short-term moving averages are turning to the upside, signaling a potential intraday bottom.
“NZD/USD last week tried to break above 0.6875-0.6900, an area which was previously unbreachable in Oct and Dec. We suspect a brief pause from here, which could see it slip to 0.6700, before another attempt higher is attempted. Any break above 0.6900 would be very bullish and argue for a multi-cent rally from there”, said analysts from Westpac.
Light calendar ahead
Today’s economic numbers in the US showed an increase of 0.5% (as expected) in the Housing Price Index of the FHFA while the preliminary March reading of the Manufacturing PMI index rose to 51.4. The data had little impact on the markets. Tomorrow in the US, the only report to be released is new home sales.
In New Zealand, the next report to watch will be on Thursday with February trade balance numbers.
(Market News Provided by FXstreet)