Technical Analysis:
- NZD/USD capped below 200-DMA at 0.7082.
- Intraday bias is neutral.
- Break above 200-DMA could see further upside.
- On the flip side break below 20-DMA could see drag till 0.6862.
Fundamentals Factors:
- The dollar which has been on the back-foot, collapsed overnight on the back of Trump's lack of conviction during the news conference.
- Markets which were looking for something concrete in respect to Trump's policies, were left largely disappointed.
- Weak data weighed over NZD. ANZ commodity prices in December rose 0.7% m/m, significantly lower than the prior 2.7%.
- However, the details revealed the dairy prices rose for the seventh time in a row, up 3.9% m/m, which capped downside.
Support levels - 0.7014 (5-DMA), 0.70(23.6% Fib of 0.74854 to 0.68621 fall), 0.6948 (20-DMA)
Resistance levels - 0.7082 (200-DMA), 0.71, 0.7116 (trendline)
Recommendation: We prefer to wait for confirmation on Technicals to initiate trade.


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