The New Zealander received support

At the beginning of the day, the New Zealand dollar received support based on the published data on the consumer price index in New Zealand.

The CPI unexpectedly surpassed the forecasts and amounted to 0.5%, thereby rising from the zero mark. But, despite the growth, this indicator continues to show a very multidirectional dynamics, pointing to the unstable increase in inflationary pressures in New Zealand.

As a result of positive data for New Zealand, the NZD/USD pair updated the maximum of the last two weeks, but after it, quickly weakened, returning to yesterday’s lows, which indicates the weakness of the New Zealand currency.

After almost half a week of growth, this pair remains under pressure of correction. A significant level of resistance continues to be 0.7180-0.7200 (FIBO. 50.0 from the May’s low). Given the overall downtrend and the achievement of significant resistance levels, the resumption of a downtrend from the NZD/USD pair is expected, which will be limited to support levels: 0.7130-00 and 0.7090-60.

Ganzenko Anton