NZDUSD has been selling off sharply but it could find support at the area of interest visible on its daily online currency trading chart. Price is stalling around the .8400 major psychological level, which lines up with a broken resistance area last year.
The .8400 handle has held as online currency trading support for the year, as the RBNZ interest rate hikes have kept the New Zealand dollar strongly supported. An upside wave could resume, as stochastic is indicating a pickup in buying momentum while moving out of the oversold levels.
NZD/USD Online Currency Trading Outlook
A bounce could take the online currency trading pair up to the next area of interest around the .8500-.8550 levels, which line up with a broken support zone. Further gains could push NZDUSD up to the previous highs near .8800.
The RBNZ has signaled a pause in its rate hikes for now as it plans to assess the impact of its tightening moves first. Dairy prices have also been declining consistently, adding more reason for the New Zealand central bank to take it easy with tightening.
Meanwhile, the US dollar has enjoyed a bit of support from better than expected US economic data. Retail sales reports are up for release today and another 0.4% uptick in the core figure and a 0.2% gain in the headline reading is expected for the month of July. Stronger than expected data could lead to a downside break from the .8400 mark and lead to more online currency trading losses for the Kiwi.
There are no event risks for the Kiwi this week, as online currency trading for this pair has been dependent on market sentiment. Geopolitical tensions appear to be fading, adding support to risk appetite and higher-yielding currencies like the New Zealand dollar. However, worsening tension could lead to a sharp breakdown of support.
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