NZD/USD: falling back to key support on 0.68 handle

NZD/USD has settled back from the 0.6841 highs that were just a wide spread away from the 0.6847 highs made on the 12th of May.

NZD/USD had gained some traction overnight in the US on the back of the GDT auction that came in line with the rise in futures showing a 3% gain in WMP leading the index higher to 2.6% vs 1.4% fall previously.

The CPI data from the U.S. that could suggest that the June hike from the FOMC is back on cards was only a temporary glitch to the birds ascent. The numbers arrived as 0.9% YoY to 1.1%YoY in April (0.4% MoM), and the core rate was above 2.0% (2.1%YoY). However, despite the lack of uptake, the dollar finally made some ground later in the US shift while Lockhart and Williams suggest June is indeed a live meeting. The bird is now on the back-foot and was sent towards 200 sma at 0.6805 on the hourly sticks.

NZD/USD levels

NZD/USD remains in encouraging territory on the bullish side having taken out the 0.6800 in a clear break, previously pushing on through the 200 sma on the 1hr sticks at 0.6808. However, that is now being tested to the downside, but so long as 0.68 holds, bulls will have a target of 0.6847 as the 12th May high still. To the downside, however, 0.6778 was the overnight low and 0.6745 was yesterday's. 0.6715 is the 9th of May low meeting 100 dma and breaking away below channel rising support.