NZD/USD has been dominated by bears in a nonvolatile manner since the bounce from 0.7550 resistance area. NZD has been quite negative with the reports recently whereas USD has been quite positive and showing consistent growth in the economic reports. Today NZD Overseas Trade Index report was published with worse value at 1.5% from the previous value of 3.9% which was expected to be at 3.5% at least. The worse report did put the currency in more pressure against USD today whereas high impact USD economic reports are going to be published. Today USD Average Earning Index report is going to be published which is expected to decrease to 0.2% from the previous value of 0.3%, Non-Farm Employment Change is expected to decrease at 180k from the previous figure of 209k, Unemployment Rate is expected to be unchanged at 4.3% and ISM Manufacturing PMI report is expected to have slight increase to 56.5 from the previous figure of 56.3. To sum up, today a good amount of volatility is expected to hit the pair whereas USD is expected to gain more strength over NZD in the coming days.
Now let us look at the technical view, the price has been quite loyal to the dynamic level of 20 EMA rejecting the bulls recently. Currently, the price is expected to be bearish in nature with a target towards 0.6940-0.7050 support area. As the price remains below the dynamic level of 20 EMA the bearish bias is expected to continue further.
The material has been provided by InstaForex Company – www.instaforex.com