NZD/USD Retains Bearish Series Ahead of PPI, 2018 Budget Statement

NEW ZEALAND DOLLAR TALKING POINTS

The New Zealand dollar trades on a firmer balance forward of a annual bill statement, though new cost movement in NZD/USD keeps a near-term opinion slanted to a downside as a span continues to carve a array of reduce highs lows. The updates from Finance Minister Grant Robertson might do small to change a near-term opinion for kiwi-dollar as a supervision led by Prime Minister Jacinda Ardernplan to serve rise a Living Standards Framework (LSF), though updates to a Producer Price Index (PPI) might clap a new miscarry in a sell rate should a imitation moderate a opinion for inflation.

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NZD/USD PRESERVES BEARISH SEQUENCE AHEAD OF NEW ZEALAND PRODUCER PRICE INDEX (PPI), 2018 BUDGET STATEMENT

Image of daily change for NZDUSD

Like a Consumer Price Index (CPI), a slack in factory-gate prices might furnish headwinds for a New Zealand dollar as it encourages a Reserve Bank of New Zealand (RBNZ) to keep a executive money rate (OCR) during a record-low via 2018. In turn, Governor Adrian Orr might hang to a stream book during a subsequent assembly on Jun 27, and a executive bank might continue to tame expectations for a rate-hike as officials ‘expect to keep a OCR during this expansionary turn for a substantial duration of time.

With that said, a New Zealand dollar might continue to break opposite a U.S. reflection as a Federal Reserve is widely approaching to broach a rate-hike in June, and new cost movement raises a risk for a serve decrease in a sell rate as NZD/USD preserves a bearish method carried over from a prior week.

NZD/USD DAILY CHART

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  • The November-low (0.6780) stays on a radar as NZD/USD continues to carve reduce highs lows, though need to see a break/close subsequent a 0.6820 (23.6% retracement) to 0.6870 (78.6% expansion) segment to open adult a subsequent area of seductiveness around 0.6780 (100% expansion).
  • However, new developments in a Relative Strength Index (RSI) clouds a near-term opinion as a oscillator bounces behind from an impassioned reading and is on a fork of flashing a text buy-signal as it appears to be climbing behind above 30.

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— Written by David Song, Currency Analyst

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