FxWirePro: NZD/USD edges higher on RBNZ inflation call, shrugs off China's sagging trade balance

Refer NZD/USD chart on Trading View

• NZD/USD edges higher on slightly rising RBNZ inflation expectations, trades 0.29% higher on the day.
   
• The RBNZ has set their Quarterly Inflation Expectations for 2018's Q3 at 2.04%, a tad higher than Q2's 2.01%.
   
• NZD also finds buyers after upbeat comments from New Zealand Finance Minister, Grant Robertson.
   
• Robertson stated that there is "every reason to be optimistic" on the New Zealand economic outlook.
   
• Kiwi bulls shrug off downbeat China trade balance data. However, upside moves in the antipodeans could be limited.
   
• China's Trade Balance shrunk by more than expected, came in at $28.05 billion, below the forecast $39.33 billion and far under the previous reading of $41.47 billion.
   
• Technical indicators suggest that the major will struggle to develop meaningful momentum.
   
• Price has broken above 5-DMA, but finds stiff resistance at 21-EMA at 0.6782. Only a decisive break above could see further upside.
   
• Markets focus on RBNZ policy meeting which could offer fresh impetus for NZD. A dovish outcome could propel further weakness in the NZD. 

Support levels - 0.6740 (5-DMA), 0.6716 (61.8% Fib), 0.6575 (Mar 2016 low), 0.6488 (78.6% Fib)

Resistance levels - 0.6781 (21-EMA), 0.6839 (cloud), 0.69

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 144.099 (Bullish), while Hourly USD Spot Index was at -102.966 (Bearish) at 0430 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.