USD has been holding the upper hand in the pair while NZD is struggling to gain momentum. Despite strong yesterday's CPI and PPI reports from the US, USD failed to increase the bearish impulsive pressure over NZD which caused the pair's correction and volatility in the market.
The Reserve Bank of New Zealand proposed to increase the amount of capital requirements for every bank to make sure that they can survive financial and economic shocks. The news affected market sentiment on NZD. Thus, it lost ground across the board due to such a scenario. The New Zealand Governor mentioned the sensibility and efficiency of monetary policy as one of the critical measures to provide resilience of the domestic economy. The quarterly Unemployment rate of NZD increased from 4% to 4.3% in the last quarter of 2018. Besides, CPI dropped from 0.9% to 0.1%.
Today Business New Zealand Manufacturing Index report was published with a decline to 51.9 from the previous figure of 53.4 and Visitor Arrivals contracted further to -1.5% from the previous negative value of -0.3%. The downbeat economic data subdued NZD gains but it managed to sustain momentum above 0.6700 area.
On the other hand, Federal Reserve Chairman Jerome Powell recently stated that the central bank's decision could be ajusted to global geopolitical risks. Citing the poicymaker, monetary policy decisions would be taken by the central bank only without any government interference. The US Consumer Price Index ex Food & energy dropped from 2.1% to 2.0%. Core CPI increased from 1.5% to 1.9% amid the ongoing rally of oil prices. Today Prelim UoM Consumer Sentiment report is going to be published which is expected to decrease marginally to 98.1 from the previous figure of 98.4 and Import Price is expected to decrease to 0.4% from the previous value of 0.6%.
Now let us look at the technical view. The price is currently trading higher after impulsive bearish pressure with a daily close yesterday off the 0.6700 area. The price is currently expected to climb higher as 0.6700 has proved itself as reliable support earlier a few times. As the price remains above 0.6700 with a daily close, the pair is going to trade under bullish pressure in the coming days.
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