FxWirePro: NZD/USD trades rangebound, dovish RBNZ comments dent kiwi

NZD/USD chart - Trading View 

NZD/USD was trading largely rangebound around 0.7078 at 06:40 GMT, outlook remains bullish.

The pair slips lower from session highs at 0.7092 after dovish comments from the Reserve Bank of New Zealand (RBNZ).

On the data front, New Zealand’s (NZ) fourth quarter (Q4) Westpac Consumer Survey crossed 95.10 prior with 106.00 figures.

Mixed China data dump fails to impress kiwi. China’s Industrial Production matches the 7.0% forecast.

However, Retail Sales eases below 5.2% to 5.0% YoY, above the previous reading of 4.3%. Meanwhile, Fixed Asset Investment YoY stood at 2.6% vs. +2.6% expected and +1.8% last.

Focus now on Wednesday’s Fed decision and Thursday’s New Zealand Q4 GDP, expected +13.5% versus -12.2% QoQ prior.

Technical analysis supports upside. But, overbought oscillators keep scope for downside. Price action remains capped at 78.6% Fib at 0.7110.

200H MA is strong support at 0.7062. Break below will see dip till 21-EMA at 0.7000.