NZDUSD A Pause in Selling?
Bearish movement in the NZDUSD cooled down last week. The week prior, RBNZ Governor Graeme Wheeler expressed that the value of the New Zealand Dollar was unjustifiable and unsustainable. This encouraged rapid selling in the NZDUSD.
There was a lower quantity of New Zealand economic releases last week, which resulted in the NZDUSD fluctuating in accordance with the market reaction to the US economic news. This week, both the latest New Zealand Unemployment Rate and Employment Change are announced. This is followed by housing data on Thursday morning.
Bearing in mind that RBNZ Governor, Graeme Wheeler also strongly hinted just over a week ago that after four consecutive interest rate hikes, the New Zealand Central Bank were set to pause monetary tightening, this will likely prevent a substantial upside rally in the NZDUSD any time soon. A consolidation period seems more likely.
In regards to the technicals on the Daily timeframe, both the RSI and Stochastic Oscillator now seem to be attempting to move away from the oversold boundaries. Possible resistance levels can be found at 0.8550 and 0.8600, with support located at 0.8481 and 0.8435.