NZD/USD bounces off lows at 0.7260, CPI eyed

Currently, NZD/USD is trading at 0.7264, up +0.24% on the day, having posted a daily high at 0.7285 and low at 0.7224.

The New Zealand dollar vs. American dollar had so far a decent trading day as it battled mixed scenarios from the Trump Trade Agenda and missed CPI not too far in Australia. Furthermore, later in the Asian session, the NZD economic docket takes the spotlight as the country's CPI figures are expected; Is the Kiwi about to experience the same scenario as its neighbor or there is a surprise in the cards? 

Historical data available for traders and investors, during January, indicates that NZD/USD pair had the best trading day at +1.60% (Jan.17) or 115-pips, and the worst at -1.26% (Jan.18) or 89-pips.

Robust Real Estate, Booming Tourism; Open Migration?

Jonathan Mitchell and Gyles Beckford, reporters at Radio NZ, noted, "Sydney-based Paul Bloxham, the regional chief economist for HSBC Bank, said New Zealand once again was leading the pack of developed economies with annual growth expected to sit around 3 percent for the next couple of years. The 2017 agenda was looking promising, he said. "We think that the tourism and the construction stories will continue to be key drivers of New Zealand's growth in 2017," he said. Mr. Bloxham said the lift in global dairy prices helped turned the growth outlook more positive as well."

Technical levels to watch

In terms of technical levels, upside barriers are aligned at 73.05 (high Nov. 10) and above that at 0.7402 (high Nov.8). While supports are aligned at 0.7170 (horizontal support), 0.7146 (100-DMA) and below that at 0.7095 (200-DMA). On the other hand, Stochastic Oscillator (5,3,3) seems slowly moving into the overbought territory, therefore, there is evidence to expect further Kiwi gains in the near term. 

On the medium-term, upside barriers are aligned at 0.7307 (horizontal resistance), 0.7364 (previous' highs 2016) and finally if prices close and open above that region, then 0.7540-80 region near 200-SMA. To the downside, supports are aligned at 0.7203 (horizontal support), 0.7120 (previous value zone) and below that at 0.7032 near 50-SMA.

Trump Taking No Prisoners